Bed Bath & Beyond said Monday it had completed a $250 million sale-leaseback deal with a private equity firm in a move to generate cash for its turnaround effort.

The struggling home-goods retailer said it had sold about approximately 2.1 million square feet of commercial space to an affiliate of Oak Street Real Estate Capital, including an undisclosed number of its 1,500 stores, a distribution facility and office space. It will continue to occupy the properties under long-term leases.

The Wall Street Journal, citing people familiar with the deal, said it included Bed Bath & Beyond’s Union, N.J., headquarters.

“This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability, and enhance shareholder value,” Mark Tritton, the company’s new CEO, said in a news release.

On news of the deal, Bed Bath & Beyond shares rose 2.3% to $16.45 in trading Monday.

As CNBC reports, selling real estate and leasing it back is a strategy that numerous retailers, including Sears and Macy’s, have deployed in the past, “especially when they’re in a pinch for liquidity.”

Like other brick-and-mortar retailers, Bed Bath & Beyond has been struggling with declining sales amid competition from businesses such as Amazon, Walmart, and Target. As part of an aggressive turnaround strategy, the company has closed underperforming stores, cut approximately 7% of its corporate staff, and reduced inventory.

Tritton, who joined Bed Bath & Beyond in November from Target, ousted six executives last month, including the chief merchandising and marketing officers.

Bed Bath & Beyond said it may use proceeds from the sale-leaseback to reinvest in its core operations and business transformation efforts, fund share repurchases, and reduce debt. It will also continue to “evaluate certain remaining real estate.”

The company’s other assets include the Buy Buy Baby, Harmon, Cost Plus World Market, and Christmas Tree Shops chains.

Chris Hondros/Getty Images

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