Bed Bath & Beyond Inc. expects to generate as much as US$450 million from asset sales as the home-goods retailer pursues a restructuring strategy to boost flagging sales.
The company is actively exploring divestitures in order to focus on growth opportunities in the home, baby, beauty and wellness businesses, according to a filing Tuesday. It said it would look to sell “non-core” assets, but didn’t offer more detail.
The move would mark another step by the chain to overhaul its business and reverse weak sales amid the coronavirus pandemic and rising competition from discount chains and online merchants. Bed Bath & Beyond sold two portfolio brands this year and has been exploring the sale of its Christmas Tree Shops and Cost Plus World Market chains, Bloomberg reported last month.
The shares rose 1.5 per cent as of 7:55 a.m. in premarket trading in New York. Bed Bath & Beyond slumped 55 per cent this year through Monday as the pandemic led to a prolonged closure of retail stores across the country.
The company also said nearly all of its stores have reopened and offered more detail on its plan to save as much as US$350 million annually. It said last week that it would close 200 locations in the next two years.