Bed Bath & Beyond has completed the sale of its Christmas Tree Shops retail banner, its institutional Linen Holdings business and a distribution center located in Florence, N.J., totaling $250 million. The retailer previously announced entering into the three separate sale agreements in mid-October.
“The timely completion of these transactions represents another important milestone in our comprehensive plan to simplify our portfolio, unlock the potential of our business and extend our authority in the home, baby, beauty and wellness markets,” said Mark Tritton, President and CEO in a statement. “We will continue to optimize our portfolio, including the potential sale of additional non-core assets. Since joining Bed Bath & Beyond a little over a year ago, our team has created greater financial flexibility and strategic focus through the divestiture of non-core assets and banners, generating over $750 million to re-invest in our digital-first, omni-always transformation and drive strong and sustainable total shareholder return.”
Capital allocation principles for Bed Bath & Beyond include investing for growth and transformation, ensuring financial resilience and returning cash to shareholders. The company also recently launched a $225 million accelerated share repurchase as part of an authorized share repurchase program totaling up to $675 million over the next three years.