Bed Bath & Beyond to Sell Cost Plus World Market to Private Equity Firm

Best Bath & Beyond (BB&B) said earlier this week that it will sell Cost Plus World Market as it aims to stabilize sales and focus on its core business. The home goods retailer announced that it’s struck an agreement with Los Angeles-based private equity firm, Kingswood Capital Management, which will buy Cost Plus World Market. The sale includes Cost Plus World Market's 243 brick-and-mortar locations, digital business, two distribution facilities and corporate office in Alameda, Calif. Bed Bath & Beyond didn't disclose terms of the deal, but said it anticipates it will close before the end of the fiscal year in February 2021.

Total Retail's Take: BB&B continues to free up capital to invest in its namesake brand. In 2020, the retailer has sold its stake in four other businesses: Christmas Tree Shops, One Kings Lane, Personalization Mall, and Linens Holdings. In addition to freeing up resources, the sale of these businesses has yielded much needed revenue for BB&B, which is in the midst of a three-year transformation plan as it looks to return to profitability. In addition to streamlining the business, BB&B has targeted investments into categories such as home, baby, and wellness, which have proven more resistant to the downturns that many other product categories have dealt with during the pandemic. Lastly, BB&B is attempting to right-size its store count as well as launch new private-label brands as part of its turnaround strategy.