Bed Bath and Beyond shares increase by 5% on Monday

Bed Bath and Beyond shares increase by 5% on Monday

The shares of Bed Bath and Beyond have gone up by close to 5% this Monday after the retailer had said that it has completed a transaction of sale-leaseback with the affiliate of the Oak Street Real Estate Capital as it now owns $250 million in the form of proceeds.

Mark Tritton who is the new CEO of the embattled company had taken the mantle of being CEO in the month of November. He has said that this deal will be acting as the first step which has been takin in terms of unlocking their valuable capital which may be used in the building of better, more efficient and stronger foundations for supporting the growth of revenue, financial stability and also enhance the value of shareholders.

In a press release, the retailer has said that it has sold properties which represent close to 2.1 million sq. ft of the commercial real estate that also includes, office space, stores and a center for distribution. The retailer owns other brands like Harmon drugstores and has close to 1,500 locations all in all.

The company has said that they are going to continue to work with the financial outsiders form outside for reviewing their real estate and determining the best use of optimizing the bases of their assets and the shareholder values being enhanced.

The company has said that it has plans of using their proceeds from this deal for reinvesting in their core businesses and the transformation efforts for the funding of a share repurchases and the reduction of the debt which had been outstanding or a mixture of these tactics. Tritton has set the ball rolling straight away after taking the mantle of being CEO.

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