After spinning off businesses including Personalizationmall.com, One Kings Lane and Christmas Tree Shops, Bed Bath & Beyond has entered into a definitive agreement to sell its remaining non-core banner, Cost Plus World Market, to Kingswood Capital Management, a Los Angeles-based private equity firm.
The Cost Plus purchase agreement includes 243 store locations, the banner’s digital business, two distribution facilities and a corporate office located in Alameda, CA. Plans call for the chain to continue operating as a stand-alone retail brand, Bed Bath & Beyond noted. The company expects the transaction to close prior to Bed Bath & Beyond’s fiscal year end in February 2021. A transition service agreement will activate at the close of the transaction to help ensure business continuity. Bed Bath & Beyond did not announce the value of the transaction.
Mark Tritton, Bed Bath & Beyond president and CEO, said, “We’ve taken deliberate steps throughout the year to streamline our portfolio and fortify our strategic focus in Home, Baby and Beauty & Wellness, and today’s announcement represents the conclusion of this work. In all, we have unlocked significant value from the divestiture of five business concepts this year, and we have also meaningfully reduced our lease liability and overall debt. These actions provide greater financial flexibility to support our digital first, omni-always transformation and our commitment to deliver sustainable total shareholder return.”