Why is Bed Bath & Beyond Selling Half Its Real Estate?
It's obvious things are bad at Bed Bath & Beyond (NASDAQ: BBBY), but were they so bad it needed to sell its headquarters and half its real estate? Well, yes, actually. For a business that once regularly touted how well it was able to generate cash, more recently the home goods retailer has been left scrounging in the couch cushions trying to dig up change.
But it just came up with a fistful of coins (and an odd assortment of hair clips, some old Cheerios, and a couple of dust bunnies) as it announced it sold 2.1 million square feet of commercial space in a sale leaseback arrangement with private equity that will net it about $250 million.
The deal includes its executive offices, a distribution center, and a whole bunch of its retail stores, but the quick infusion of cash gives it some breathing space as it readies a third quarter earnings report that's expected to be terrible.
Source Fool.com
