Struggling retailer Bed Bath & Beyond (BBBY) has announced a deal with Oak Street Real Estate Capital for a sale-leaseback transaction valued at over $250 million.

"We are pleased to complete this sale-leaseback transaction," Mark Tritton, president and CEO at Bed Bath & Beyond, said in a statement. "This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value."

 

According to Bed Bath & Beyond, about 2.1 million square feet of commercial space has been sold back to the real estate firm, including stores, a distribution facility, and office space. The home décor retailer said it will continue to occupy the space - dependent on long-term leases.

Bed Bath & Beyond previously announced a review of its retail portfolio amid a series of store closures. The company said it is continuing the evaluation process with the remaining properties that it owns.

The approximate $250 million generated from the sale-leaseback deal will be used to reinvest in Bed Bath & Beyond’s operations and transformation efforts as it looks to reduce its debt, fund repurchases, and drive the growth of its business, the company said.

Tritton, a former Target executive, has only been in the CEO position with Bed Bath & Beyond for a few weeks and has already made some aggressive changes as part of the company’s turnaround plan. In December, Tritton cleaned house at Bed Bath & Beyond, announcing six executive departures as he looks to realign his management team.

Let go from the executive team were the chief merchandising officer, marketing officer, digital officer, general counsel, and chief administrative officer. The company’s chief brand officer resigned the week prior to the departures.

Shares of Bed Bath & Beyond stock were up 3.98% as of 11:07 a.m. EST on Monday.

Bed Bath & Beyond store A Bed Bath & Beyond store in Massachusetts is pictured. Photo: Bed Bath & Beyond