Bed Bath & Beyond To Sell Cost Plus World Market

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Bed Bath & Beyond To Sell Cost Plus World Market
Bed Bath & Beyond To Sell Cost Plus World Market

Bed Bath & Beyond has struck a deal to sell its Cost Plus World Market in an effort to stabilize its sales and focus more on its core business.

As part of its agreement with L.A-based Kingswood Capital Management, a private equity firm, the company will sell the brand’s 243 physical store locations, its digital assets, two distribution facilities and a corporate office in Alameda, California. The deal is expected to close by February 2021. 

“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,” Bed Bath & Beyond CEO Mark Tritton said in a statement.

Stock buybacks is one of the other steps the company has taken this year. The company said that it had approved a $150 million share repurchase program, following a separate $225 million buyback program that was initiated in October this year. With the two programs, the company expects to buy back $825 million in shares over the next three years, CNBC reported.

These efforts are part of a three-year turnaround program that is being led by Tritton, who was hired as the new CEO last year. Tritton’s strategy has been to cut underperforming stores, focussing on key categories such as home improvement and childcare products, as well as launching 10 private-label brands by spring of next year. 

The company has also reportedly sold four of its concept brands, including Christmas Tree Shops, One Kings Lane, Personalization Mall and Linen Holdings, as it has looked to free up capital to invest in its namesake brand.

Bed Bath & Beyond’s shares were up by less than 1 percent this morning. The company’s stocks have been up by 11 percent this year, valuing the company at $2.4 billion.

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