Attention all shoppers! Just when we thought Bed Bath & Beyond was going extinct for good, the retailer announced that a new concept is in the works. Parent company Beyond, Inc. has swooped in and negotiated a “strategic partnership” with Kirkland’s Home to “drive sustainable profitable growth” and “leverage core strengths,” according to an Oct. 21 press release. The news comes on the heels of what has been a chaotic two-year run for Bed Bath & Beyond, including bankruptcy filings, an acquisition, and some website renovations. But don’t get too excited just yet—the rollout will be micro compared to the chain’s former physical footprint.
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After forecasting “substantial doubt” about its future at the top of the year, Bed Bath & Beyond declared bankruptcy in April 2023. The company was unable to make any headway in paying off its crippling debt and was forced to shut its doors as a result.
From there, a bidding war ensued, with Overstock.com coming out as the winner. The online furniture marketplace acquired Bed Bath & Beyond’s intellectual property, business data, rights to mobile apps, and certain contracts for $21.5 million, reported The New York Times. (Overstock.com is owned by Kirkland’s Home.)
In Aug. 2023, Bed Bath & Beyond, under the guise of Overstock.com, unveiled a new and improved website, stocked with home furnishings, including furniture, decor, and rugs—in addition to the kitchen, bathroom, and bedding items longtime Bed Bath & Beyond customers have come to know and love.
Things have been quiet as Bed Bath & Beyond has found its bearings, but now the company is entering a new chapter with Kirkland’s.
According to the press release, the company has plans to open up “neighborhood” store locations nationwide. These will range from 7,000 to 15,000 square feet, says Retail Dive, with Kirkland’s serving as the exclusive brick-and-mortar operator and licensee of Beyond.
Customers can expect to see Kirkland’s curated assortment of home goods—including furniture, rugs, textiles, and other decor—across all physical storefronts and online. In return, Beyond will guide Kirkland’s through a digital transformation to help boost online sales.
"Having known the iconic Bed Bath & Beyond brand for years, we are thrilled to partner with Marcus and the entire Beyond team to bring the brick-and-mortar strategy back to life," Kirkland’s CEO Amy Sullivan said in a statement. "Kirkland's Home has a 58-year legacy in the home decor sector, and the core strength of our brand and this organization lies in merchandising and store operations.”
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As of this reporting, Beyond has not disclosed in which cities it plans to open brick-and-mortar Bed Bath & Beyond locations.
However, that’s just part of the $25 million debt and equity transaction. Of that hefty sum, a $17 million term loan credit will be allotted to Kirkland’s to pay off an existing loan with Gordon Brothers. The rest will be converted into Kirkland’s shares.
Calling retail both an art and a science, Beyond executive chairman Marcus Lemonis said Bed Bath & Beyond’s future success is dependent “on an omnichannel approach.”
“The key to retail is efficiency in assortment, space management, sourcing, and merchandising, all while recognizing that smaller, tighter footprints with significantly lower fixed cost models is a winning recipe. We are very excited to work with the Kirkland's board and Amy, along with her entire management team, as we reinvigorate the Bed Bath & Beyond brand,” he said in a statement.
