LOS ANGELES — Cost Plus World Market has a new owner.
Los Angeles-based private equity firm, Kingswood Capital Management, has acquired the retail chain from its parent company, Bed Bath & Beyond. According to SEC filings, Bed Bath & Beyond sold Cost Plus World Market for $110 million.
"We are excited to begin our partnership with World Market," said Michael Niegsch, a partner at Kingswood. "As an independent company, decision-making will be more closely aligned with the needs of the business and its dedicated associates."
Based in Alameda, Cost Plus World Market has a network of about 245 brick-and-mortar stores nationwide, including 18 in the Greater Los Angeles region, as well as an online presence. The deal also includes a pair of distribution sites and an office. Cost Plus World Market specializes in selling home products such as furniture, décor, rugs, apparel, and food and drink products sourced worldwide.
Kingswood has tapped former Pier 1 Imports CEO Alexander Smith to lead the Cost Plus World Market team.
"I have been a fan of World Market for many years," said Smith, the newly appointed executive chairman of Cost Plus. "The company's combination of consumables, home furnishing, and décor gives it a unique niche in very large addressable markets. I'm looking forward to working with the team to extend the brand's reach and expand market share."
The sales come as the New Jersey-based Bed Bath and Beyond continues to sell off assets as part of an effort to streamline and optimize its business hit hard by the coronavirus catalyzed downturn.
In August, Bed Bath & Beyond sold PersonalizationMall.com to 1-800-FLOWERS.COM for $245 million.
In October, the company sold its Christmas Tree Shops retail shops, Linen Holdings, and a distribution center to three separate buyers for about $250 million.
In the last fiscal quarter, Bed Bath & Beyond lost $75 million in sales year over year. While sales dropped, the company reported an increase in digital sales.
"Our significant portfolio transformation will lead to fewer, better performing stores and will include a healthier core revenue base with a larger proportion of a faster-growing digital business," said Gustavo Arnal, chief financial officer and treasurer at Bed Bath & Beyond, during the company's January 7 earnings call. "We're now tightening our projected fiscal '21 revenue range to approximately $8 billion to $8.2 billion."