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Bed Bath & Beyond Sells 243-Store Cost Plus World Market Banner

Bed Bath & Beyond continues to sell off non-core assets, this time with a definitive agreement to sell Cost Plus World Market to private-equity firm Kingswood Capital Management.

The purchase agreement includes 243 brick-and-mortar locations, the brand’s digital business, two distribution facilities and a corporate office in Alameda, Calif. The agreement indicated that Cost Plus World Market is likely to continue operating as a standalone retail brand.  

“We’ve taken deliberate steps throughout the year to streamline our portfolio and fortify our strategic focus in home, baby and beauty and wellness, and today’s announcement represents the conclusion of this work,” said Mark Tritton, President and CEO of Bed Bath & Beyond in a statement. “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.” 

Additionally, the company approved a new $150 million accelerated share repurchase program (ASR), which will be in addition to the $225 million ASR announced on Oct. 28, 2020.  Both ASR programs are expected to be completed by no later than the end of the company’s fiscal year on Feb. 27, 2021. The company also has 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.

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