A dramatic return from bankruptcy
Bed Bath & Beyond, the once behemoth of the home goods retail business, is staging a dramatic return after it filed for bankruptcy and closed all its stores in 2023. The company announced this week that it purchased Kirkland’s Home in a $10 million transaction, signaling its determination to become a force again in the U.S. retail market.
The acquisition includes the Kirkland’s Home brand name and additional assets of The Brand House Collective. Bed Bath & Beyond, in its statement, called the move a central part of its national expansion strategy.
Converting Kirkland’s into Bed Bath & Beyond
As a stipulation of the sale, Kirkland’s Home stores will be converted to Bed Bath & Beyond stores. The company also said it would expand Kirkland’s Home into the wholesale business, offering its seasonal home decor and furniture to independent retailers.
Management said the move would not only honor Kirkland’s nearly 60-year legacy but also create a stable source of revenue beyond traditional retail.
Bed Bath & Beyond executive chairman Marcus Lemonis was delighted with the relaunch. “The excitement around the Bed Bath & Beyond brand has been tangible with the first of many store conversions,” he said.
A new chapter in retail strategy
The rebuilt company, now based in Murray, Utah, has shifted the majority of its focus to e-commerce while maintaining a chain of physical stores. It also owns Overstock and buybuy BABY, giving it multiple brand names under one corporate umbrella.
Aside from its retailing stakes, the company has put money into blockchain holdings like tZero and GrainChain. The investments reflect Bed Bath & Beyond’s aspiration to own a diversified portfolio that transcends home goods.
The company’s website highlights the firm’s mission of making a wide assortment of merchandise that combines quality, style, and value to make customers’ daily lives better.
Reopening U.S. stores
In August, the company celebrated the reopening of its first non-Nashville store. Building on that momentum, Lemonis stated Bed Bath & Beyond aims to open around 300 small- to medium-sized neighborhood stores across the country, in large part thanks to the Kirkland’s acquisition.
But California will not receive new Bed Bath & Beyond physical stores. Rather, the state’s shoppers will be served through delivery alone, despite California having a massive population of more than 39 million.
That plan reflects a more focused retail plan, placing physical expansion in markets the company believes can offer higher returns.
Bankruptcy lessons and a second chance
Just last year, Bed Bath & Beyond seemed finished as it shuttered stores and sold assets. Its bankruptcy was a high-profile example of how traditional retailers were struggling with increasing competition from online shopping and changing consumer habits.
The new plan suggests the retailer is betting on smaller, strategically placed stores instead of huge big-box stores. In combination with its recharged focus on e-commerce and wholesale channels, Bed Bath & Beyond is taking a multi-pronged approach to retail survival today.
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The broader retail environment
Bed Bath & Beyond is far from the only one to navigate bankruptcy and restructuring as a retailer. Rite Aid, for example, is going through its second bankruptcy process, having just announced the closure of 40 additional stores in one state this month alone. Other chains across the U.S. have likewise struggled to deal with changing consumer expectations, rising costs, and economic uncertainty.
Conversely, Bed Bath & Beyond’s acquisition of Kirkland’s Home is a rare success story of resurrection in an industry where most firms vanish after seeking bankruptcy protection.
Looking ahead
The success of this resurgence will depend on whether Bed Bath & Beyond is able to successfully convert its stores, grow its wholesale business, and push online. With hundreds of smaller stores opening, the retailer is positioning itself to serve customers in a more local, responsive way.
For now, however, the $10 million acquisition has provided the brand with a second life. What seemed like the final curtain call in 2023 may just be the beginning of a new chapter for Bed Bath & Beyond.
