Dive Brief:
- Bed Bath & Beyond Inc. agreed to a merger deal in which it will acquire The Brand House Collective (formerly Kirkland’s), per a Monday press release. The transaction “implies an equity value of approximately $26.8 million” with the inclusion of The Brand House Collective stock that Bed Bath & Beyond already holds.
- The deal is expected to close in the first quarter of 2026 pending shareholder approval and the consent of lender Bank of America. Boards for both entities unanimously approved the transaction. Bed Bath & Beyond advanced $10 million under an existing delayed draw loan with The Brand House Collective “to fund store conversions, accelerate omnichannel inventory procurement and support operations.”
- Over 40 stores are expected to close in early 2026 and the newly combined company aims to make $20 million in cost reductions “driven by the removal of duplicated functions, overlapping systems, and operational inefficiencies,” per the release. Bed Bath & Beyond holds about 40% of the outstanding shares of The Brand House Collective.
Dive Insight:
The new merger agreement between Bed Bath & Beyond and The Brand House Collective is the latest in a slow drip of partnership developments between the companies this past year.
When the new merger deal closes, The Brand House Collective CEO Amy Sullivan will become CEO of the newly organized “Beyond Retail Group” division. She will oversee all omnichannel retail operations across brands such as Bed Bath & Beyond, BuyBuy Baby, Overstock and Kirkland’s Home.
Under The Brand House Collective, Sullivan had already been running much of the daily retail operations for the brand portfolio.
The Brand House Collective in press releases in late July began describing itself as “a multi-brand merchandising, supply chain and retail operator” responsible for managing the Bed Bath & Beyond Inc. portfolio of brands and also operating the Bed Bath & Beyond Home website.
Additionally, Kirkland’s Home announced in September that it planned to convert all of its stores into Bed Bath & Beyond locations over the next two years
Bed Bath & Beyond Inc. completed the purchase of Kirkland’s Home trade name and brand assets for $10 million in September — a steep increase from the $5 million purchase price it had previously set for the Kirkland’s IP.
In that deal, Bed Bath & Beyond Inc. announced intent to expand Kirkland’s Home into the wholesale market for the first time and earn a revenue-related fee per existing agreements.
The relationship between both entities goes back to October of 2024, when Bed Bath & Beyond Inc. (which operates Bed Bath & Beyond, BuyBuy Baby and Overstock) gave Kirkland’s the exclusive ability to operate five neighborhood small-format Bed Bath & Beyond stores.
A new Bed Bath & Beyond Home store opened in August via its deal with Kirkland’s in Nashville, Tennessee. In October, Bed Bath & Beyond Inc. announced plans to begin a nationwide store franchise program.