Bed Bath & Beyond Inc., the home-goods retailer mired in a lengthy sales slump, rose in early trading after selling some real estate in a deal that generated net proceeds of more than US$250 million.
The properties represent about 2.1 million square feet of space, including retail stores, a distribution facility and offices, the company said Monday. It is leasing back the space in the transaction with an affiliate of Oak Street Real Estate Capital.
Bed Bath & Beyond has struggled against competition from online retailers, discount and big box stores. Last month, six senior executives left the company, part of a management shake-up by new Chief Executive Officer Mark Tritton as he works to turn the retailer around.
The company, which previously said it was reviewing its real estate portfolio, said the proceeds may be used for operations, to reduce its debt and to buy back shares.
Bed Bath & Beyond climbed as much as 4.2 per cent in premarket trading to US$16.75. It gained 53 per cent last year amid optimism that Tritton, a former Target Corp. executive, will put the company on a stronger footing. The company’s shares had tumbled the previous five years.
