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Tuesday, June 10, 2008

UPDATE: Fort Worth-based Pier 1 buyout offer rejected by California-based Cost Plus/World Markets

By Pegasus News wire

Updated 08:55 a.m., June 17, 2008

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Fort Worth-based Pier 1 is proposing to buy its rival, Cost Plus Inc., parent company of the World Market stores. They'd do it via a stock swap, said to be worth about $88 million.

The quote from Pier 1 talks about similar customer bases, similar business models, distinct market positions, stronger more competitive company, better positioned for future growth, blah blah blah.

Cost Plus/World Market used to be a little better in the '80s than it is now in terms of merchandise and quirky feel, but it still feels less corporate than Pier 1. Both chains sell baskets and candles and what-not, but Cost Plus/World Market sells wine and coffee and fancy chocolates, while Pier 1 does not.

Cost Plus, which has 292 stores in 33 states, is thinking about it. Pier 1 has 1,117 stores.

UPDATE: Yeah, it ain't happening -- Cost Plus directors rejected the offer.

Posted by T.G./Update by Alex B.

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Comments

chrisdanger Anonymous

Wait a sec, I thought Pier 1 was in dire financial straits, why are they out buying companies??

2 months, 4 weeks ago ( Link to this comment | Suggest removal )

xdavidwattsx

xdavidwattsx Anonymous

I think it's along the lines of KMart buying Sears. KMart was closing all of their stores and in trouble but then somehow they buy the behemoth known as Sears?

Head scratch.

2 months, 4 weeks ago ( Link to this comment | Suggest removal )

David Gouldin

David Gouldin Staff

Eh, I wouldn't call Lindt fancy. I do go to the Denton location for my Bull Dog root beer fix, though.

2 months, 4 weeks ago ( Link to this comment | Suggest removal )

DC

DC Anonymous

This makes a lot of sense for these retailers. We've all ready seen Bombay go down the tubes.

Considering a downturn in retail sales, it's prudent to consider consolidating stores and product lines, then trimming staff and locations. Especially considering both places' penchant for overpriced patchouli.

Better off staying alive, even in part through a merger than to go Chapter 11 alone.

The KMart / Sears deal could have worked out much better if they would have actually tried to change their offerings instead of just trading plots of land.

2 months, 4 weeks ago ( Link to this comment | Suggest removal )

Kay

Kay Anonymous

That was my first reaction too, chrisdanger, about Pier 1. Interesting the world of 'corporate bankruptcy and such'.

2 months, 3 weeks ago ( Link to this comment | Suggest removal )

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