New owner of bankrupt retail giant buys partner, closing 40 stores

BBBY +2.82% TBHC +2.54%

Bed Bath & Beyond has been the brand that won't die.

The name was purchased by the former Overstock.com, which adopted Beyond as its new name before adopting the entire Bed Bath & Beyond name as its corporate identity.

That company has worked with the former Kirkland, which now goes under the name "The Brand House Collective" in a strategic partnership. That partnership is now becoming a merger, but before you can understand the new deal, it's a good idea to understand the previous one.

How Brand House Collective and Bed Bath & Beyond work together

• In October 2024, Kirkland’s (now Brand House Collective) and Beyond entered a strategic partnership. Source: Kirkland

• Under that deal: Kirkland’s would operate small-format “neighborhood” Bed Bath & Beyond stores (up to ~15,000 sq. ft.) under a license. Beyond provided capital: a $17 M term loan to Kirkland’s, plus an $8 M equity subscription. There was a trademark license agreement: Kirkland’s would pay royalties on net store sales under the Bed Bath & Beyond banner. Beyond also earned a “collaboration fee” based on Kirkland’s e‑commerce revenue. Source: Beyond

• The idea: Kirkland’s would tap into its brick‑and‑mortar strength + merchandising, while Beyond would use Kirkland’s footprint to rebuild a physical Bed Bath & Beyond presence in a leaner format.

• As part of this, Kirkland’s rebranded into The Brand House Collective (June 2025), signaling a broader role: not just Kirkland’s Home, but a “multi‑brand merchandising, supply chain and retail operator” aligned with Beyond’s portfolio (Bed Bath & Beyond Home, Overstock, buybuy BABY). Source: Kirkland's Brand Vision

• By September 2025, the companies also agreed on intellectual property licensing: Beyond paid $10 M to acquire the Kirkland’s Home brand/IP.

• They also maintained a financial link: Beyond expanded its credit facility with Brand House Collective to fund store conversions and operations.

Bed Bath & Beyond merges with Brand House Collective

While the two companies had worked closely together, they were still separate businesses. That will soon no longer be the case.

Bed Bath & Beyond, Inc. and The Brand House Collective, Inc. have entered into a definitive merger agreement, under which Bed Bath & Beyond will acquire The Brand House Collective.

"Based on the companies' respective closing stock prices on November 21, 2025, the transaction implies an equity value of approximately $26.8 million, which includes The Brand House Collective stock already held by Bed Bath & Beyond as previously disclosed and reflects an exchange ratio of 0.1993 shares of Bed Bath & Beyond common stock for each The Brand House Collective share," the companies shared in a press release.

The companies expect to save $20 million annually due to overlapping costs.

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Brand House Collective CEO Amy Sullivan is expected to serve as chief executive officer of the newly organized Division, Beyond Retail Group, overseeing all omni-channel retail operations, including merchandising, stores, digital commerce, and customer experience, across Bed Bath & Beyond's brands, including but not limited to Bed Bath & Beyond, buybuy BABY, Overstock, and Kirkland's Home brands.

Marcus Lemonis will remain executive chairman.

"In addition, more than 40 underperforming or non-strategic stores have been identified for closure in early 2026. These closures are intended to support bottom-line improvement and inventory optimization as an element of the broader efficiency strategy," the company added.

The Brand House Collective (Kirkland’s) & BBBY strategic deal highlights

• In November 2025, BBBY entered a merger agreement to acquire The Brand House Collective, Inc. (formerly Kirkland’s, Inc.).

• The combined company expects to unlock $20 million+ in cost eliminations via efficiencies (systems, logistics, merchandising) after the merger.

• Brands under The Brand House Collective: Kirkland’s Home, Bed Bath & Beyond Home (store concept), Bed Bath & Beyond (brand), buybuy BABY, and Overstock are listed in its portfolio.

• BBBY also acquired Kirkland’s Home brand assets (trade name, brand rights) for about $10 million.

• Post-merger, Amy Sullivan (from THBC) is expected to lead a newly organized “Beyond Retail Group” overseeing omni‑channel operations across BBBY, buybuy BABY, Overstock, and Kirkland’s Home.

• The deal involves a stock exchange: THBC shareholders receive 0.1993 shares of BBBY per TBHC share.

• They plan to close ~40 underperforming / non-strategic stores in early 2026 as part of optimizing the network. Source: Investor relations

Experts share opinions on the new Bed Bath & Beyond

This deal may have been foretold in May when the former Kirkland's went to Bed Bath & Beyond looking for more money.

"Following lackluster Q4 2024 and full-year results, Kirkland’s is in active discussions to secure a $5 million expansion on its term loan credit agreement with partner Beyond, Inc. This would be in addition to the $17 million Beyond already provided under the original partnership agreement last fall," Retail TouchPoints reported.

Kirkland's, even after it became Brand House Collective, was struggling.

The company had "minimal credit availability with $38.9M outstanding debt" at the end of its most recent quarter, Stock Titan reported.

Brand House Collective also saw its revenue decline in the second quarter.

"Our Q2 results reflect two major events that weighed heavily on the quarter: the tornado damage at our distribution center and our deliberate decision to liquidate select inventory ahead of expanding Bed Bath & Beyond assortments. Together, these factors were the dominant drivers of the year-over-year decline in profitability and created near-term pressure on sales," Sullivan said in the Q2 earnings release.

Kirkland's, a retail store brand owned by the new company, has struggled.

"Like many of its peers, it has grappled with headwinds from softening discretionary spending. Since 2019, overall visits to the chain have steadily declined as the company downsized its store fleet – and most months of 2025 have continued to register year-over-year (YoY) foot traffic declines. Online performance has also lagged, with digital comparable sales dropping last quarter by double digits," according to data from Placer.ai.

The company, however, has room for improvement.

"Still, the data also reveals signs of underlying brick-and-mortar strength. Over the past several quarters, Kirkland’s in-store comparable sales have remained relatively stable, with some quarters seeing slight increases and others modest declines," the data company shared.

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This story was originally published by TheStreet on Nov 25, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.