Bed Bath & Beyond Closes Out Sale of

After a contentious battle to sell (PMall) to (NASDAQ: FLWS), Bed Bath & Beyond (NASDAQ: BBBY) finally sealed the deal on Monday. The struggling housewares chain will benefit from the cash influx as it begins to see higher sales after coronavirus-related store closures.

Narrowing its niche

Bed Bath & Beyond has undergone a massive management overhaul since activist investors overthrew the CEO in late 2019 and brought in Mark Tritton from Target to take over. Tritton hired a slew of new executives and detailed a plan to tighten up operations and expand its digital options.

Kitchen counter.

Image source: Getty Images.

One of the company's key actions during the makeover was the sale of PMall to for $252 million, announced in February. This was meant to bring in cash as well as allow the company to focus on its core chains.

But tried to delay the deal after the pandemic hit. Bed Bath & Beyond took the issue to the courts to try to force the sale, and the two companies announced a settlement agreement on July 21 to complete the sale for a reduced price of $245 million. Tritton said, "The completion of this transaction is an important milestone in our plan to simplify our portfolio and rebuild authority in our core market."

The company had a 49% sales decline in the first quarter, which covered the months of pandemic store closures, but sales began to rebound after stores reopened.

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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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