FORT WORTH, Texas–Pier 1 Imports has withdrawn its proposal to buy rival Cost Plus for $88.4 million. Cost Plus had rebuffed the offer, saying it would go against the best interest of its shareholders.
The combined retailer would have generated over $2 billion in annual sales and operated about 1,400 stores.
“Our goal in pursuing a combination with Cost Plus was to create a stronger, more efficient company,” Pier 1 said in a statement.
Both retailers are emporiums of imported home goods and share a similar store concept and sourcing model.
“We have concluded, however, it is unlikely that we would be able to acquire a majority interest in Cost Plus at a price that would make sense for our shareholders,” the statement said.
Some analysts said the timing of the purchase was premature as Pier 1 is still in the midst of carrying out its own turnaround.
“Even if Pier 1 is on target, this transaction would distract management form the tricky task of executing at Pier 1,” said Matt Fassler, a Goldman Sachs analyst, in the research note at the time Pier 1 made its offer for Cost Plus.
“We wish to assure our shareholders that our turnaround is on track and we remain confident about the future of Pier 1 Imports,” Pier 1’s statement said.
No comments:
Post a Comment