The Bed, Bath and Beyond commercial property at 215 Harlem Ave. was sold Dec. 19, 2019, and the following day Bed, Bath and Beyond entered into a leaseback agreement with the new owner.
The $3,571,500 sale was to Edison FPIL001, LLC, which leased the property back to Bed, Bath and Beyond. The terms of the lease agreement expire on Jan. 31, 2025, at which time the tenant has two options to extend the lease for an additional 60 months each. After that, Bed Bath & Beyond has an option to extend the lease for another 48 months.
According to a Jan. 6 Forbes article, the company “has reportedly sold off half its real estate – including its corporate offices, at least one distribution center and an unspecified number of stores – to a private-equity firm that will lease the space back to the retailer.”
On Feb. 27, in a company news release, it was announced that Bed Bath & Beyond would be cutting approximately 500 positions in a restructuring program aimed at reducing selling, general and administrative (SG&A) expense by around $85 million. The restructuring program “includes a reorganization and simplification of its field operations, significant reduction in management positions across the business, and outsourcing of several functions.”
President and CEO Mark Tritton said in a statement, “We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary.”
The company is planning to close 60 locations, including three in Illinois: Chicago (530 N. State St.), McHenry (3340 Shoppers Dr.), and Mount Prospect (1057 N. Elmhurst Rd.). The company also owns Buy Buy Baby, Harmon Face Values and World Market, and some of these will be shuttered in the closings.
Fourteen Bed Bath & Beyond stores went out of business in 2019, according to USA Today.