Bed, Bath & Beyond to sell Christmas Tree Shops, other brands

The company will continue to invest in its digital business

Bed Bath & Beyond Inc. disclosed Tuesday that it will be shedding some of its brands, including the Christmas Tree Shops, in an effort to "further increase its financial strength" amid the coronavirus-related economic downturn.

Continue Reading Below

BED BATH & BEYOND TO CLOSE OVER 200 STORES AMID CORONAVIRUS

The company entered into a purchasing agreement with Handil Holdings, LLC, which will oversee all 80 brick-and-mortar Christmas Tree Shop locations and a Middleborough, Mass., distribution center once the transition is complete.

Handil plans to continue operating Christmas Tree Shops as a stand-alone retail brand, the company said. The transaction with Handil is expected to close next month, although that date is subject to customary closing conditions.

BED, BATH & BEYOND TO CUT 2,800 JOBS

Under two other agreements, the company's Linen Holdings business will be sold to The Linen Group, LLC,  and its Florence, N.J., distribution center to an "institutional buyer," the company announced.

TickerSecurityLastChangeChange %
BBBYBED BATH & BEYOND INC.24.07-0.67-2.69%

Overall, the company expects to generate roughly $250 million in revenue after selling off all three "non-core assets."

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

"Today's announcement builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets," CEO Mark Tritton said in a statement.

Tritton also noted that in optimizing its portfolio, the company will continue to invest in its digital business.

CLICK HERE TO READ MORE ON FOX BUSINESS