Beyond, saying it needs to focus on its core properties, has entered into a definitive agreement to sell the majority stake in its Zulily business to Lyons Trading Co., operator of online offpricer Proozy.com.
Shortly before revealing the Zulily sale, Beyond announced it appointed Debra Perelman its board of direction. Perelman, former CEO of Revlon, is founder and managing partner of InviNext Growth Partners, a consumer-focused emerging growth investment firm, according to LinkedIn.
Beyond will receive $5 million in the Zulily transaction while maintaining a 25% stake in the brand. The company expects the transaction to have no material effect on its full-year adjusted earnings per share.
“We have made significant progress in improving the performance of Bed Bath & Beyond and Overstock.com through sequential margin improvement, improved site experience, vendor consolidation and right-sizing our fixed expenses,” Adrianne Lee, Beyond’s president and CFO said about the Zulily sale. “With the recent acquisition of Buybuy Baby, we want our team laser focused on our core brands as we march towards profitability.”
Alex Thomas, Beyond CEO, added, “This (Zulily) sale reflects our commitment to resource optimization, our mandate to delivering profits for our home and family-centric brands, and a focus on our largest growth opportunities as a company.”
Beyond has been active of late with president Dave Nielsen terminated and executive chairman Marcus Lemonis assuming the additional title of principal executive officer, as well as the announcement of a narrower loss but lower revenues.
