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Beyond, Inc. sells Utah HQ, eyes $65M cost cuts

Published 12/21/2024, 02:26 AM
BYON
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MIDVALE, Utah - Beyond, Inc. (NYSE:BYON), the parent company of well-known online retail brands including Bed Bath & Beyond and Overstock (NYSE:BYON), announced today the completion of its corporate headquarters sale in Midvale, Utah. The transaction, part of the company's strategic plan to reduce debt and fixed costs, took place on Friday, December 20, 2024.

The sale is set to contribute to the company's goal of $65 million in annualized fixed cost reductions. Adrianne Lee, Beyond's Chief Financial and Administrative Officer, stated, “I am pleased to report we have delivered almost 90% of our $65 million annualized fixed cost expense reduction while making sequential progress on our critical business KPIs, with meaningful improvement in December.”

Beyond, Inc. has negotiated a lease-back agreement allowing them to retain a 5,000 square foot data center within the property. This move aligns with their objective to streamline operations and adapt to evolving business needs. Lee also noted the company has secured new office space in the Salt Lake City area to serve as its headquarters, which is expected to further reduce fixed cost expenses.

The proceeds from the sale are earmarked to fully settle the mortgage obligations related to the property, with the remaining funds intended to support operational funding.

Beyond, Inc. specializes in e-commerce, owning a portfolio of online shopping brands that attract millions of customers every month. The company's suite of products caters to various life stages and consumer needs.

This news comes as part of Beyond's larger strategic efforts to improve its financial standing and operational efficiency. The information is based on a press release statement from Beyond, Inc. Discover more detailed insights and 15+ additional ProTips about Beyond's financial health, valuation metrics, and growth prospects through the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Beyond Inc. has been the subject of several significant developments. The company has reported a 16.6% year-over-year decline in revenues, totaling $311 million. Despite this, the number of active customers increased by 21%, reaching 6 million, while orders delivered decreased by 19% year-over-year to 1.6 million.

Argus has downgraded Beyond Inc. from Hold to Sell, stating that the company no longer aligns with the stocks they aim to cover based on promise and client interest. Other analyst firms have also adjusted their views; Piper Sandler and Needham have revised their price targets to $8 and $9 respectively, while BofA Securities downgraded the company from Neutral to Underperform, reducing their price target to $6.

Beyond Inc. has also announced the retirement of its Chief Legal Officer, E. Glen Nickle, who will transition to an advisory role within the company. Additionally, Executive Chairman Marcus Lemonis has made substantial investments, acquiring over two hundred thousand shares of the company's common stock. Lastly, Beyond Inc. plans to sell its headquarters by the fourth quarter, expecting to reduce staff-related expenses by $20 million annually.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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