Fort Worth, Texas Pier 1 Imports Inc. said Tuesday it is withdrawing its offer to buy Cost Plus Inc. for $88 million, according to Associated Press.
Pier 1 said it was unlikely it would be able to buy the company at a price that would make sense for its shareholders.
Pier 1 offered to buy Cost Plus 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.
Last week, Cost Plus' board of directors rejected Pier 1's offer, saying it was not in the best interest of the company or its shareholders.