Destination Maternity To Partner With Bed Bath & Beyond Unit
05/01/2012| 05:31pm US/Eastern
Destination Maternity Corp. (>> Destination Maternity Corporation) said it will end an existing partnership with Babies "R" Us and move some of its business to Bed Bath & Beyond Inc.'s (>> Bed Bath & Beyond Inc.) buybuy BABY unit, the home-furnishing retailer's own maternity clothing chain.
Destination plans to sell its Motherhood Maternity and A Pea in the Pod brands at buybuy BABY stores starting in November after exiting Babies "R" Us, a unit of Toys "R" Us Inc., in October. Buybuy BABY had 64 stores in the U.S. near the end of February.
The company did not detail its reason for scrapping the partnership with Toys "R" Us, which was bought in 2005 by Vornado Realty Trust (VNO) and private-equity firms Bain Capital LLC and Kohlberg Kravis Roberts & Co. for $6.6 billion.
The switch comes as Destination Maternity's restructuring and cost-reduction efforts look poised to improve its earnings following a string of soft sales results earlier last year.
Destination Maternity shares closed at $19.87 Tuesday and were inactive after hours. Bed Bath & Beyond was up 27 cents at $70.31 in light after-hours trading.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com