Bed Bath & Beyond Acquires Online Furniture and Home Accessories Retailer One Kings Lane
In the highly competitive markets and changing preferences of customers, once highflying companies often find it difficult to hold on to their high valuations.
One Kings Lane Inc. is a good example of such a case. The on online furnishing retailer which was once valued almost $1 billion a couple of years back was bought by Bed Bath & Beyond Inc for a small part of that price.
On Tuesday, Bed Bath & Beyond Inc. said it acquired the website without disclosing the amount and the terms of the transaction. The company said the purchase price was "not material."
According to Dow Jones VentureSource, One Kings Lane; the online decor business which operates a furniture and home accessories sales website raised about $225 million in venture capital with a market valuation of approximately $900 million in early 2014. Its value had spiked to greater than double from 2011's $440 million in three years.
One Kings Lane was founded in 2009 and gained popularity soon with its flash sales, where prices are slashed heavily for a limited time period. However, in 2014, soon after its $112 million fund raising, the company trimmed its workforce by fifteen percent and Doug Mack, its Chief executive left the company to join Fanatics, which is also e-commerce startup. Dinesh Lathi took up as the company's new CEO.
A spokeswoman from Bed Bath & Beyond said that the deal will help in boosting the furniture and home décor offerings of the company.