Bed Bath & Beyond Inc. said on Tuesday (Jan. 19) that it has finished its sale of Cost Plus World Market (CPWM) to California-based private equity firm Kingswood Capital Management, according to a statement.
The firms have consented to a transition services deal after the close of the transaction “to help ensure business continuity,” according to the statement. Bryan Cave Leighton Paisner LLP and B. Riley Securities Inc. were among the advisors to Bed Bath & Beyond on the deal.
“The completion of this transaction marks the conclusion of our work to streamline our portfolio. These efforts will help fund our transformation and put us in the position to start fiscal 2021 with a more cohesive set of core businesses in Home, Baby, Beauty & Wellness. We remain committed to driving sales and margin growth, generating cash and investing in our business plan to drive shareholder value,” Bed Bath & Beyond President and CEO Mark Tritton said in the statement.
In December, Bed Bath & Beyond Inc. announced that it had entered into a definitive agreement to sell Cost Plus to Kingswood. The deal covers just over 240 physical locations, two distribution sites, the Cost Plus online business and an office on the West Coast, according to an announcement at the time.
The deal had been expected to close prior to the conclusion of Bed Bath & Beyond’s fiscal year end in February 2021.
In January, Bed Bath & Beyond had reported that digital sales almost doubled during its fiscal Q3 even as overall sales dropped 5 percent and the firm lost over $75 million.
“We knew this holiday season would be like no other, and we took several steps in advance to help our customers shop safely and with ease,” Tritton said in covering the results at the time.
The firm said that comparable digital sales for Q3 climbed 77 percent throughout all of the firm’s brands, with the inclusion of 94 percent expansion at its flagship Bed Bath & Beyond brand.
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