One Kings Lane was worth nearly $1 billion. Now it's sold for a 'not material' amount to Bed Bath & Beyond
Bed Bath & Beyond, which generated $12 billion in net sales in its most recent fiscal year, said the purchase price was "not material".
One Kings Lane was once a fast-growing flash sale site for home goods and had the valuation to match it. The company, which was founded by Alison Pincus, raised more than $225 million in venture capital from top tier investors including Kleiner Perkins and IVP at a reported $900 million valuation. However, a report from Recode in January 2016 said the company was looking to be sold for a quarter of that valuation.
The site rose to prominence at a time when flash sales, like those from Fab and Gilt Groupe, seemed like the next wave of ecommerce. However, neither were a resounding success. Gilt Groupe, a startup that was once worth billions, recently got acquired for a mere $250 million. Fab, another near-billion-dollar startup that was like an online-only Ikea, sold its remains for about $20 million.
Bed Bath & Beyond CEO Steven Temares said in the acquisition announcement that the furniture site would become "a cornerstone for Bed Bath & Beyond's growing offerings in furniture and home décor".
Shares of Bed Bath & Beyond were roughly unchanged in after hours trading on Tuesday.