Bed Bath & Beyond to sell Cost Plus chain in private equity deal
Bed Bath & Beyond Inc. jumped after the home-goods retailer agreed to sell Cost Plus World Market, bringing in fresh capital as the company works to rejuvenate its business.
The company is selling the chain to Kingswood Capital Management, a Los Angeles-based private equity firm, according to a statement Monday. Financial terms of the deal weren’t disclosed. Bed Bath & Beyond also approved a new $150 million accelerated share repurchase program.
The sale comes after Bed Bath & Beyond said in July it may generate nearly half a billion dollars through asset divestitures as part of a restructuring program spurred by flagging sales. Bloomberg News reported in June that the makeover might include sales of Cost Plus World Market and its Christmas Tree Shops chain.
Bed Bath & Beyond has attracted droves of quarantined customers as they spruce up their homes. It has coincided with Chief Executive Officer Mark Tritton’s focus on building out its management team, ramping up e-commerce capabilities and focusing on its core business units.
Cost Plus began as a store at San Francisco’s Fisherman’s Wharf in 1958 that promoted goods from around the world. It now operates about 243 stores selling furniture and other home items. Bed Bath purchased the chain in 2012.
Bed Bath & Beyond’s shares rose as much as 7.7% in early trading Monday in New York.