While the COVID-19 pandemic has crushed many a retailer, it's been even more harsh toward companies that were struggling in the first place.
Bed Bath & Beyond (BBBY) has seen falling sales and went through a major executive shakeup at the end of 2019. As part of an operations overhaul, the home goods company has sold off some real estate as well as subsidiaries.
Hoarding cash to make it through
In the fourth-quarter conference call on Wednesday, CEO Mark Tritton said the company had sold its One Kings Lane home goods division. The price and buyer were not specified.
Bed Bath & Beyond still has many assets and a strong reputation, both of which give it a shot at turning its business around. It's been piling up cash to allow it to continue functioning while it figures itself out, and this sale is another step in streamlining operations while keeping enough cash on hand.
The company had previously announced the sale of PersonalizationMall.com to 1-800-Flowers.com for $252 million, and that deal was supposed to be finalized on March 30. 1-800-Flowers.com did not complete the purchase at that time, however, and Bed Bath & Beyond is taking steps to force the sale.
Bed Bath & Beyond has closed all of its 994 namesake locations, but it has kept open 124 Buy Buy Baby stores and 55 Harmon Face Values stores.
Sales in the fourth quarter decreased 6.1% while the company's loss per share was $0.53, compared to a loss of $1.92 in the fourth quarter of 2018.
Bed Bath & Beyond's stock price rose 15% on the news and is trading at $4.44 as of this morning.