Just a year after acquiring the business, Beyond has reached an agreement to sell 75 per cent of its stake in Zulily, the online marketplace of women’s and children’s apparel, for $5 million.

The buyer is Lyons Trading Company which operates discount retailer Proozy.com. 

Beyond, the parent of Bed Bath & Beyond and Overstock, said the sale reflected a $6.7 million valuation of the business, represented a return on the original investment and would help restore profitability to the group’s core brands. 

“We have made significant progress in improving the performance of Bed Bath & Beyond and Overstock.com through sequential margin improvement, improved site experience, vendor consolidation and right-sizing our fixed expenses,” said Adrianne Lee, Beyond’s President and CFO.

“With the recent acquisition of BuyBuy Baby, we want our team to be lazer-focused on our core brands as we march towards profitability.”

Alex Thomas, COO of Beyond, said the sale reflects Beyond’s commitment to resource optimization, its mandate to deliver profits for its home and family-centric brands, and a focus on the company’s largest growth opportunities. 

Utah-based Beyond said the deal was not expected to have a material effect on its earnings per share estimates.