Oakland, Calif. Cost Plus said Monday its board of directors unanimously rejected an $88 million takeover bid from larger Pier 1 Imports Inc., according to the Associated Press.
Pier 1 offered to buy the company earlier this month in a stock-swap transaction. In the proposal, Pier 1 said it would issue 0.6 shares of its common stock for each share of Cost Plus common stock, implying a value of $4 per share.
In a letter sent to Pier 1, Cost Plus' board said the deal is not in the best interests of the company and its shareholders. The board said the company has enough liquidity to "pursue its business objectives and to deliver improvement in our core business metrics."
The board also called the proposal "distracting and ill-timed given the difficult retail environment and the progress we have made in investing in and improving our business," the report said.