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BFD Expert Voices - Retail Deals

BFD Expert Voices

Ghost, a B2B marketplace for excess inventory, wants to make it easy — and discreet — for retailers to sell items sitting on shelves and in warehouses, co-founder Josh Kaplan tells Kimberly.

Why it matters: Sitting on inventory is a costly business, especially when it means turning to promotions, which eat into margins, or racking up the warehouse bill.

The big picture: Retail inventories have come down from their peak in October, but they are still higher than they were three years ago, according to the U.S. Census Bureau.

What they’re saying: Some inventory, Kaplan says, “ends up getting sold for pennies on the dollar.”

He says with the first-party and third-party data his company has, it can help educate both buyers and sellers on the market price, “building the Kelley Blue Book of liquidation essentially,” he says.

“It equips both sides with better information and confidence that they're making the right decisions,” he says.

How it works: Retailers can list their inventory the same way they can list a home on Airbnb.

They can also include their restrictions, such as not wanting to sell to large department stores, online, or to certain regions.

It then matches them with buyers, who will purchase the inventory.

The intrigue: Part of the draw to Ghost is that it’s done discreetly, Kaplan says, because retailers don’t want to disclose when they’re liquidating their assets to competitors and even potential customers.

What’s happening: Los Angeles-based Ghost has surpassed $1 billion in total supply value that's listed on the platform, Kaplan says.

It recently launched a new dashboard that allows buyers to view inventory that’s curated algorithmically, rather than having to weave through pages upon pages of available products.

What’s next: Ghost is being opportunistic in this environment of tech layoffs to hire good talent and even entertain some acquisitions — though it hasn't closed a buy yet, Kaplan says.

Flashback: Last year, the company raised a $13 million Series A, with $7 million in debt, led by Union Square Ventures.

Eniac Ventures, Human Capital and Flexport participated.

It raised a $5 million seed from Equal Ventures and Eniac a few months earlier.

1 big thing: Ghost aims to ease retailers' inventory anxieties

Illustration of a clothing rack on top of a cell phone screen.

Pernod Ricard's Canadian affiliate agreed to buy a majority stake in Canada’s Ace Beverage Group, in a deal the drinks giant says will expand its ready-to-drink presence across the country, Axios' Michael Flaherty writes.

Why it's the BFD: The maker of Absolut Vodka and Jameson Irish Whiskey says the RTD category, also known as pre-mixed cocktails, is one of the fastest-growing alcohol categories, with a more than 20% year-on-year growth trajectory. 

Details: Pernod’s Canadian affiliate, Corby Spirit and Wine, will buy a 90% stake in privately held Ace at an enterprise value of C$165 million ($123 million), Pernod said in a statement.

2. The BFD: Pernod unit to buy majority stake in Ace Beverages

Photo: Vlad Karkov/SOPA Images/Getty Images

Bed Bath & Beyond has selected Overstock.com as its "stalking horse" bidder for the intellectual property behind its namesake banner, Kimberly writes.

Driving the news: The position gives Overstock the ability to get the first bid on Bed Bath's remaining assets.

Details: This includes all of Bed Bath's IP, goodwill, business internet properties, mobile platform, business data and contracts, according to a bankruptcy filing.

The proposed purchase price for the assets is $21.5 million in cash.

Catch up fast: Bed Bath & Beyond filed for Chapter 11 bankruptcy in April.

Bed Bath listed total assets of $4.4 billion and total debt of $5.2 billion as of last November, per court documents.

Representatives at Bed Bath and Overstock couldn’t immediately be reached for comment.

3. Bed Bath names Overstock as "stalking horse" bidder

Photo: Paul Weaver/SOPA Images/LightRocket via Getty Images

• Proclaim, a Mountain View, Calif.-based maker of at-home teeth cleaning devices, raised $15m in Series B funding from Khosla Ventures, Global Asset Capital, Ensemble Innovation Ventures, SpringRock Ventures and Revere Capital. https://axios.link/3P85o4v

• Towerbrook Capital Partners is seeking a buyer for Kevin’s Natural Foods, a Stockton, Calif.-based maker of refrigerated entrées that could fetch between $700m and $800m, per Bloomberg. https://axios.link/3qGvOA3

• Ecovative, a company that makes materials with mushroom mycelium, has raised $30m Series E round led by Viking Global Investors with Standard Investments participating. https://axios.link/3X6X2Mf

• Unspun, a sustainable fashion brand, has raised $14m in Series A funding led by Lowercarbon Capital. https://axios.link/43Nmzwo

• Curio Brands, a designer and marketer of branded fragrances, has acquired direct-to-consumer candle and home fragrance company Otherland. https://axios.link/3Nqc6Bm

• Bunge, the agribusiness giant, is nearing a deal to buy Glencore’s Viterra in a combination that would bring the world’s largest agricultural traders together for about $14b. https://axios.link/3PelVUB

• Papa John’s has acquired several restaurants in London and parts of the U.K. that were previously operated by U.K.-based Drake Food Service International for an undisclosed sum. https://axios.link/3CqT8EI

• PepsiCo’s Pioneer Foods will acquire the remaining 50% stake in Future Life Health Products, a South African nutritional cereal maker. https://axios.link/3N6UmK7

• IK Partners, U.K.-based private equity firm plans to acquire GoodLife Foods, a Dutch frozen snacks maker, from investor Egeria for an undisclosed sum. https://axios.link/43xWnWA

• Urbis Food, an Italian seafood supplier, received an investment for an undisclosed sum from private equity firm Fondo Agroalimentaire Italiano, which is owned by French investor Unigrains through its Italian arm. https://axios.link/3CntEYE

• UrbanPiper, an Indian restaurant industry software platform, has acquired the U.S. business of Ordermark, an online order management unit of Nextbite. https://axios.link/43zjVdS

• Allegro Funds, an Australian private equity firm, has agreed to divest its stake in Pizza Hut Australia, selling to U.S.-based restaurant franchisee Flynn Restaurant Group. https://axios.link/43zk6WA

4. Retail transactions

• Dominick Azevedo was named chief sales officer of bedding maker Serta Simmons. https://axios.link/3oYoJdA

• Melissa Mullen, who has worked for Jo Malone London and Nike, was named global brand president of Sweaty Betty, the women’s activewear brand acquired by Wolverine World Wide. https://axios.link/3oS29DD

5. It's Personnel

Happy Retail Tech Tuesday, Retail readers.

✂️ Situational awareness: Grubhub is laying off about 15% of its workforce as costs increased "at a higher rate” than the business could generate, CEO Howard Migdal said in a message to staff, per WSJ.

🙏 Big thanks to newsletter editor Claire Rychlewski and copy editor Mickey Meece for today's edits.

June 13, 2023

1 big thing: Ghost aims to ease retailers' inventory anxieties