Bed Bath & Beyond agreed to sell online retailer PersonalizationMall.com to 1-800-FLOWERS.COM for $252 million, the companies announced Tuesday.
The sale comes as Bed Bath & Beyond has struggled to keep up with a changing retail landscape that has seen more consumers shopping online. The retailer’s market capitalization has fallen from a peak of $17.35 billion in June 2012 to below $1.5 billion on Tuesday.
“PersonalizationMall’s extensive product offering and industry-leading personalization capabilities will be an excellent addition to our growing family of popular gifting brands,” said Chris McCann, CEO of 1-800-FLOWERS.COM.
|BBBY||BED BATH & BEYOND INC.||12.32||+0.06||+0.45%|
|FLWS||1 800 FLOWERS COM||30.02||-0.98||-3.16%|
The deal includes PersonalizationMall.com’s website and 360,000-square-foot distribution facility in Bolingbrook, Illinois. Its revenues were more than $150 million in its most recent year, McCann said.
BED BATH & BEYOND FIGHTS FOR ITS SURVIVAL
“We expect PersonalizationMall.com to be accretive to our top and bottom-line results in fiscal 2021,” McCann said.
Last week, Bed Bath & Beyond said it saw a 5.4 percent drop in comparable sales in its fourth quarter, blaming dipping store traffic, inventory management issues and increased promotional activity and markdowns.
It’s another addition for 1-800-FLOWERS.COM, which includes brands like Harry & David, The Popcorn Factory and Cheryl’s Cookies.
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FOX Business’ Jonathan Garber contributed to this report.