NORTH BAY -- Cost Plus Inc. (Nasdaq: CPWM) stores in Santa Rosa, Napa and Greenbrae are part of a $495 million cash deal by the Oakland-based home accessories retailer to sell the operation to New Jersey-based Bed Bath & Beyond Inc. (Nasdaq: BBBY), which has stores in Santa Rosa, Larkspur and Vallejo.
Upon the purchase of Cost Plus stock, expected to be completed in the second fiscal quarter, which ends in August, Cost Plus will be an Oakland-based subsidiary operating 259 stores under the names World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores in 30 states.
Cost Plus has been undertaking a turnaround effort in recent years, including a collaboration with Bed Bath & Beyond in the past two years, according to a letter Cost Plus Chief Executive Officer Barry Feld posted today for employees.
"One of these initiatives was a test of our specialty food departments in a limited number of Bed Bath & Beyond stores," he wrote. "We and Bed Bath & Beyond were very encouraged by the results of these in-store tests over the past year and a half. The tests showed that our best-in-class product development and sourcing capabilities, which as you know includes our food and beverage businesses, could help generate in-store traffic and sharpen the edge against online retailers."
Mr. Feld wrote that he doesn't anticipate changes in the number of stores with this deal.