Bed Bath & Beyond Inc. (Union, N.J.) has closed on a stock sale it announced last week, giving it an immediate cash infusion of $225 million. In addition, the struggling retailer announced it will close another 150 stores.
The chain said its ultimate operating goal includes 360 representatives of its flagship brand, along with about 120 of its buybuy BABY stores unit across the U.S.
“This transformative transaction will provide runway to execute our turnaround plan,” Sue Gove, President & CEO of Bed Bath & Beyond Inc. said in a news release. “We continue to put our customers at the center of every decision, positioning Bed Bath & Beyond to meet and exceed their expectations, while resetting our foundation for near- and long-term success. We are optimizing our store fleet and supply chain and continuing to invest in our omni-always capabilities. This will enable us to better serve our customers, and grow profitably, by directing merchandise where and how they want to shop with us.”
According to a variety of business news publications, leading the purchase for the BB&B shares was Hudson Bay Capital Management. In addition to the $225 million in proceeds the retailer received from the sale, it will also have access to an additional $800 million, assuming certain conditions are met.