Bed Bath & Beyond will spend $1 billion on upgrading its stores and lease buybacks in an attempt to turn around the business after an underwhelming holiday season.
The company announced Tuesday it will spend $400 million on store remodelling and supply chain upgrades, according to CNBC. It has allocated a further $600 million to for share repurchases and debt reduction.
New CEO Mark Tritton, who joined the company in November, told CNBC that the retailer had a “track record” of poor investments.
It is reportedly planning to remodel about 25 locations this fiscal year. The company’s portfolio totals about 1,500 stores, including its other brands Christmas Tree Shops, World Market and buybuy Baby.
The company announced this week it had sold PersonalizationMall.com, a platform that sells gifts to 1-800-Flowers.Com for $252 million. The deal followed a sale-leaseback transaction last month with an entity linked to Oak Street Real Estate Capital, which generated $250 million in proceeds.
As of the end of November, Bed Bath & Beyond reported close to $900 million in cash and cash equivalents, according to CNBC. It is expected to release fourth-quarter and full year earnings on April 15. [CNBC] — David Jeans