Bed Bath & Beyond (NASDAQ:BBBY) news for Monday includes the company signing a massive real estate deal.
A Bed Bath & Beyond news release notes that this deal has it taking part in a sale-leaseback with Oak Street Real Estate Capital. This deal generates $250 million in net proceeds for the retail chain.
Bed Bath & Beyond notes that the deal covers 2.1 million square feet of commercial space. That includes retail stores, a distribution facility and office space. The company will continue to occupy these spaces and follow its leases.
The Bed Bath & Beyond news release reveals that the company already has plans for the proceeds from the deal. It wants to reinvest this money into its core business, transformation efforts, share repurchases or reduce its outstanding debt.
Bed Bath & Beyond notes that it is continuing to work with financial advisors to go over its portfolio of stores and concepts. It will also continue to evaluate some of the real estate that it still owns.
Mark Tritton, Bed Bath & Beyond’s President & Chief Executive Officer, has this to say about the positive news for BBBY stock.
“We are pleased to complete this sale-leaseback transaction. This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.”
BBBY stock was up 2.77% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.