Omni-channel retailer Bed Bath & Beyond has signed a definitive agreement to divest its business to 1-800-FLOWERS.COM, for $252m.

This amount is subject to certain working capital and other adjustments.

Bed Bath & Beyond’s president & CEO Mark Tritton said: “This transaction is another important step towards simplifying our portfolio and deepening our focus on our core Home, Baby and Beauty businesses.

“By unlocking valuable capital from within our business, we can accelerate the company’s ongoing business transformation and our efforts to re-establish Bed Bath & Beyond’s authority in the Home space.”

Bed Bath & Beyond stated that it will continue to optimise its portfolio of retail concepts and owned real estate for its transformation and boost shareholder value.

Completion of the deal is subject to customary closing conditions.

After the completion of the deal, will continue to offer product and personalisation services to Bed Bath & Beyond and buybuy BABY.

The deal is expected to close during the first quarter of 2020.

Goldman Sachs & Co and Proskauer Rose served as advisors to Bed Bath & Beyond on this deal.

Bed Bath & Beyond has announced its capital allocation strategy for fiscal 2020.

This strategy will include an estimated $1bn of spending spread across capital return to shareholders, debt reduction, and reinvestment in core business operations to boost growth.

The retailer stated that it plans to spend up to $400m on store remodels and upgrading its supply chain and around $600m on share repurchases and debt reduction.