Bed Bath & Beyond Selling Cost Plus World Market
Bed Bath & Beyond is selling its Cost Plus World Market (CPWM) banner.
The retailer said that it has entered into a definitive sales agreement with Kingswood Capital Management, a Los Angeles-based private equity firm.
The purchase agreement includes 243 brick-and-mortar locations, the CPWM digital business, two distribution facilities and a corporate office located in Alameda, California, and it is expected that CPWM will continue to operate as a stand-alone retail brand. The transaction is anticipated to close prior to Bed Bath & Beyond's fiscal year end in Feb. 2021, and is subject to customary closing conditions.
Additionally, the retailer has approved a new $150 million accelerated share repurchase program (ASR), subject to market conditions, which will be in addition to the $225 million ASR announced on Oct. 28. Both ASR programs are expected to be completed by no later than the end of the retailer’s fiscal year on Feb. 27. The company has also expanded its total share repurchase program from up to $675 million to up to $825 million over the next three years by approving the new ASR program.
"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,” said Mark Tritton, Bed Bath & Beyond's president and CEO. “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."
In late October, the Union, New Jersey-based retailer laid out a three-year road map, offering new (and improved) financial guidance and the strategies it plans to leverage to achieve success.
Bed Bath & Beyond said that it expects its turnaround plan to help stabilize same-store sales in fiscal 2021, and rise in the low- to mid-single digits by 2023.