Daily News
From Home Furnishing Business
Cost Plus, Equity Firm Reach Agreement
April 18,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on April 2007
Cost Plus, owner of World Market, has entered into a confidentiality and standstill agreement with Red Mountain Capital Partners. Under the agreement, Cost Plus will provide Red Mountain, which owns a 9.8 percent stake in the retailer, current non-public information.
Red Mountain has expressed an interest in maintaining conversations with Cost Plus management about the retailers operations, strategic direction, capital structure and corporate governance.
Cost Plus agreed to grant Red Mountains request for confidential information based on acceptance of a standstill agreement prohibiting the firm from acquiring additional Cost Plus shares through the end of this year without the retailers written consent. The agreement also prevents Red Mountain from taking other actions that could change control of the company through the end of the year.
Cost Plus has 292 stores in 34 states. Red Mountain Capital Partners is a Los Angeles-based investment firm that takes long-term stakes in micro-cap public companies and works with management to increase shareholder value.