Bed Bath & Beyond Seals $26.8 Million Deal, Plans 300 Store Openings
Bed Bath & Beyond has entered into a significant agreement worth $26.8 million to acquire The Brand House Collective, previously known as Kirkland’s Inc. This acquisition marks a pivotal move for the company, which filed for bankruptcy in 2023. The deal, announced on November 24, 2023, is part of a broader strategy that aims to open approximately 300 new stores over the next two years, including hundreds of rebranded locations.
The merger is expected to transform most Kirkland’s stores into Bed Bath & Beyond outlets. While some locations will likely close, the majority will transition to the Bed Bath & Beyond brand. In a statement, Marcus Lemonis, executive chairman of Bed Bath & Beyond, emphasized the potential benefits of the acquisition. “This acquisition is a big step in building a profitable, growth-oriented Everything Home company,” he said, highlighting the expected savings of over $20 million by eliminating duplicate costs and enhancing operational efficiency.
The plan includes converting around 250 to 275 Kirkland’s locations into smaller Bed Bath & Beyond Home stores. This shift follows the successful opening of a pilot store in Nashville, Tennessee, back in August. The initial success of this pilot contributed to an accelerated strategy for the merger, which is set to be finalized in the first quarter of 2026.
In addition to the store conversions, Bed Bath & Beyond intends to bolster its portfolio by launching new locations for other brands, including buybuy BABY and potentially brick-and-mortar stores for Overstock. The company’s ambitious plan aims to enhance its market presence significantly, with the goal of opening a total of 300 stores within the next 24 months.
Since the beginning of October, several Kirkland’s stores in Tennessee have already undergone rebranding and reopening as Bed Bath & Beyond locations. Reports indicate that these early conversions have resulted in double-digit sales growth, suggesting a positive reception from consumers.
The merger between Bed Bath & Beyond and The Brand House Collective is part of a broader trend in the retail sector, where significant mergers and acquisitions are becoming increasingly common. Earlier this year, other notable deals included a $2.4 billion merger between popular athletic giants and $35.3 billion acquisition of Discover by Capital One.
As Bed Bath & Beyond seeks to navigate its post-bankruptcy landscape, this merger with The Brand House Collective represents a critical step toward restructuring and revitalizing its business model. The focus on reducing costs while expanding its footprint could position the company for a more robust recovery in the competitive retail market.
