Leonard Green Has Built Up a Secret Stake in Bed Bath and Beyond

Beauty products retailer expands contract with Memphis Logistics Company and opens up a 25,000 square foot store at Highland Commons.

Bed Bath and Beyond Inc. (NYSE:BBBY) was secretly scooped up at a value of $75 million last year by Leonard Green and Partners, a buyout firm which puts its money on beaten down retailers.

The stocks were purchased initially in the first quarter of 2014 by the Los Angeles based private equity firm, which was accumulated at 990,000 shares until the end of the last year. Leonard Green was granted permission by the US Securities and Exchange Commission to not disclose the holdings till the end of this month. In addition, the firm also received clearance to not disclose its stake of PetSmart Inc., a large US pet store chain, in March.

The decision for Leonard Green to purchase and boost its stake at Bed Bath and Beyond came at a time when the company had reported below analysts’ expectations during the fourth quarter last year in January 2014. After floating at a now low of less than $55 last summer, the stock price has now rebounded to less than $80.

It is usual for money managers to be confidential about their investments, though this is the case for those who have invested over a $100 million in equities, but for that, they have to fill out ‘Form 13F’ with the SEC, after the end of each quarter, and should have a very valid business reason to do so.

Meanwhile, Bed Bath and Beyond has expanded its contract with the Memphis-based distribution and logistics company by securing an extension in a lease of more than 334,000 square feet of industrial space. Wesley Kraker has leased distribution spaces for Orlando, Atlanta, Houston, and Memphis for Bed Bath and Beyond. On the other hand, Pathmark Transportation Co., headquartered in Memphis, has been assigned the responsibility to distribute various Bed Bath and Beyond merchandise across various stores in the country.

In news, Bed Bath and Beyond has announced that it will open up the doors to the 25,000 square foot at the Highland Commons Shopping Centre located near the Hudson-Berlin line. It is located at the intersection of Interstate 495 and Route 62 (Exit 26), where the company will sell domestic merchandise and home furnishings, with prices ranging from as low as $1 to a maximum $5. Retail store, Five Below, opened its store more than a couple of weeks ago, serving as a competitive threat to Bed Bath & Beyond.

Bed Bath & Beyond stock prices ended the day at $71.76, flat from yesterday’s trading.