Cost Plus, the parent of home decor retailer World Market, has rejected an unsolicited takeover offer by Ft. Worth, Texas-based home decor chain Pier 1 Imports.
In a statement, Cost Plus executives called the Pier 1 proposal “highly conditional” and “not in the best interests of Cost Plus and its shareholders.”
Pier 1 offered about $88 million for the company, which sells casual home furnishings, decor, housewares and other home items similar to the assortment found in Pier 1 stores.
"We believe that the combination of Pier 1 Imports and Cost Plus is extremely compelling and would create significant value for the stakeholders of both companies," said Alex Smith, president and CEO of Pier 1. "Given our similar customer bases and broadly similar business models, but distinct market positions, we believe Cost Plus is an excellent fit with Pier 1 Imports.”
Pier 1 saw several quarters of losses, but swung back to profitability in the first quarter. Cost Plus recorded losses of $32 million in the first quarter.