Bed Bath & Beyond sells Christmas Tree Shops
UNION, N.J.—Bed Bath & Beyond is selling its Christmas Tree Shops nameplate, its institutional Linen Holdings business and a New Jersey distribution center in separate agreements, the specialty retailer announced this afternoon. The deal is expected to generate approximately $250 million, the company said.
Christmas Tree Shops is being sold to Handil Holdings, LLC. The agreement includes all 80 brick-and-mortar Christmas Tree Shop locations and a Middleborough, Mass., distribution center. Handil plans to continue operating the chain as a stand-alone retail brand, Bed Bath said. The transaction is expected to close in November, subject to customary closing conditions.
Linen Holdings, a hospitality and healthcare business, is being sold to The Linen Group, LLC, an affiliate of Lion Equity Partners. Linen Holdings will merge with Riegel Linen, an existing Lion Equity portfolio company. The sale of Linen Holdings is expected to close in this month, subject to customary closing conditions.
Bed Bath’s distribution center in Florence, N.J., is being sold to an institutional buyer. Bed Bath said it has signed a lease agreement with the buyer, which it did not name, to continue operations and provide business continuity during a transition period. That deal is also expected to close this month.
The additional sale of “non-core assets” could be in the works as the company continues to optimize its portfolio, Bed Bath said.
“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,” said CEO Mark Tritton. “Customers are responding well to the introduction of our new omni-always services, and we will continue to invest in our digital-first experience with a customer-inspired assortment that makes it easy to feel at home with Bed Bath & Beyond.”