After partnering together since October 2024, Bed Bath & Beyond Inc. has agreed to acquire The Brand House Collective (formerly Kirkland’s) in a transaction valued at approximately $26.8 million.
The two companies first began working together over a year ago to bring Bed Bath & Beyond back to brick-and-mortar retail. Since that time, the partnership, and the companies themselves, have undergone a series of transformations and rebrands. Kirkland’s rebranded as the Brand House Collective in June and then sold the Kirkland’s Home retail banner to Bed Bath & Beyond, Inc. in September, solidifying its new role as BB&B’s retail operator. At the same time, Bed Bath & Beyond, Inc. also underwent another rebranding, reverting back from the previous Beyond, Inc. moniker to a name that Executive Chairman Marcus Lemonis said better reflects its “most valuable piece of intellectual property.”
Throughout the course of their partnership, BB&B has made a series of investments in Brand House. In May, following lackluster Q4 2024 and full-year results, Brand House secured a $5 million expansion on its term loan credit agreement with BB&B, which was added to the $17 million BB&B already had provided under the original partnership agreement in late 2024.
Creating an ‘Everything Home’ Company
Now BB&B is buying the whole kit and kaboodle: “This acquisition is a big step in building a profitable, growth oriented ‘Everything Home’company,” said Lemonis in a statement. “The power of this deal comes from a more efficient and productive engagement with the consumer, while extracting over $20 million in duplicate costs. The most valuable asset of this transaction is the talent and leadership that comes with it, giving our historical marketplace business a stronger product and consumer experience focus.”
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In connection with the execution of the merger agreement, Bed Bath & Beyond has advanced $10 million under an existing delayed draw term loan facility with The Brand House Collective to fund store conversions, accelerate omnichannel inventory procurement and support operations while the deal is finalized. Prior to the closing of the deal, the companies also have agreed to amend or refinance The Brand House Collective’s existing credit facility with Bank of America.
The transaction is expected to close in Q1 2026, subject to Brand House shareholder approval. Helpfully, Bed Bath & Beyond presently holds approximately 40% of the outstanding shares of The Brand House Collective.
40 Stores to Close While Brick-and-Mortar Expansion Continues
The $20 million in cost savings Lemonis referenced will be driven by the removal of duplicated functions, overlapping systems and operational inefficiencies across merchandising support, logistics, technology and administrative structures. Additionally, more than 40 underperforming or non-strategic stores have been identified for closure in early 2026.
However, the closures are not a signal that BB&B plans to move away from its aggressive brick-and-mortar strategy. Just last month, the company launched a national franchise system to step up the brick-and-mortar return of Bed Bath & Beyond, following the opening of the chain’s first store since its 2023 bankruptcy, which was a conversion of a former Kirkland’s Home location.
BB&B said in its statement that early conversions of Bed Bath & Beyond stores “have delivered double-digit sales growth shortly after reopening…validating the opportunity to scale a high-conversion format across the broader fleet.” Plans also are in the works to bring back stores for the BuyBuy Baby and Overstock banners.
Brand House CEO to Lead New BB&B Division
Once the deal closes, Brand House will become the Beyond Retail Group, with current Brand House CEO Amy Sullivan remaining at the helm of the new division. In her new role, Sullivan will oversee all omnichannel retail operations, including merchandising, stores, digital commerce and customer experience, across Bed Bath & Beyond’s brands, including Bed Bath & Beyond, Kirkland’s Home, BuyBuy Baby and Overstock.
“Amy has played a central role in leading our strategic partnership over the past year,” said Lemonis. “She is the right leader for this division because she understands the customer and will execute on my standard for customer focus, brand consistency, merchandising excellence and operational rigor across the organization.”
“Our combined entity strengthens our financial position and reaffirms our mandate to grow revenue and profit at the pace the market expects,” added Sullivan in a statement. “Our focus is clear: we will put the customer at the center of every decision, differentiate our brands with intention and accelerate customer growth and lifetime value in ways that drive meaningful revenue and sustainable profitability.”
