Bed Bath & Beyond, 1-800-Flowers settle lawsuit over PersonalizationMall.com
1-800-Flowers will now acquire PersonalizationMall.com for $245M
Bed Bath & Beyond and 1-800-Flowers have settled a lawsuit over the sale of PersonalizationMall.com.
The home furnishings company sued 1-800-Flowers in April after the flower company wanted to delay its purchase of PersonalizationMall.com -- a personalized gift company -- because of the coronavirus pandemic, Reuters reported at the time.
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In their settlement, the companies agreed that 1-800-Flowers would still buy PersonalizationMall.com for $245 million, “subject to certain working capital and other adjustments,” according to a press release about the settlement.
The deal is expected to close before Aug. 3.
Customers carry bags from Bed Bath & Beyond store in 2013. (Kevork Djansezian/Getty Images)
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1-800-Flowers had previously agreed to buy PersonalizationMall.com from Bed Bath & Beyond for $252 million, FOX Business reported at the time.
The deal was supposed to close by March 30, but after the coronavirus hit the U.S., 1-800-Flowers tried to delay the closing until April 30, Reuters reported.
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“While we still desire to proceed with the transaction, we maintain that the conditions to closing the transaction have not been satisfied in light of the consequences of the COVID-19 pandemic, including the shut-down of the PersonalizationMall.com facilities until at least April 30, 2020,” the company said, according to Reuters.
However, Bed Bath & Beyond sued the company, arguing, “Even a calamitous event such as COVID-19 does not permit a party to avoid its obligations.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | n.a. | n.a. | n.a. | n.a. |
| FLWS | 1 800 FLOWERS COM | 8.77 | +0.02 | +0.23% |