Bed Bath & Beyond retail stores are coming back — though in smaller form than customers are used to.
Kirkland’s Inc. has successfully finalized a $25 million investment deal with Beyond, the parent company of Bed Bath & Beyond, Overstock, Zulily and BuyBuy Baby.
As part of the deal, Kirkland’s becomes the exclusive brick-and-mortar operator and licensee for new, smaller-format Bed Bath & Beyond stores, which are expected to launch nationwide beginning later this year.
Kirkland’s shareholders overwhelmingly approved the investment, which was announced this past fall — with 97% of the votes cast in favor of issuing common stock shares as part of the agreement.
Beyond, formerly known as Overstock.com, acquired Bed Bath & Beyond’s intellectual property after the retailer filed for bankruptcy in April 2023.
Beyond has transitioned Bed Bath & Beyond from a brick-and-mortar retailer into an online-first brand while working on reintroducing physical stores through a partnership with Kirkland’s, the home décor and furnishings retailer.
The company also owns online clothing and lifestyle retailer Zulily and recently acquired the global rights to Buy Buy Baby as part of its expansion strategy.
Beyond completed an $8 million equity purchase and converted an $8.5 million term loan into common stock following a special shareholder meeting that was held this past Wednesday.
News of the deal was first reported by Chain Store Age.
In total, Beyond has now injected $25 million into Kirkland’s and owns approximately 40% of the company’s outstanding shares.
“Today marks a pivotal moment for Kirkland’s, as the completion of this transaction and the ongoing value of our strategic partnership with Beyond begin to unlock new drivers of transformation following our efforts over the past year focused on revitalizing the Kirkland’s brand,” , according to Kirkland’s CEO Amy Sullivan.
“As we look ahead, together with the Beyond team, we will continue to leverage Kirkland’s core strengths, including our merchandising, store operations, and supply chain expertise, to build a cohesive omni-channel strategy for Beyond’s portfolio of iconic brands.”
Once a retail giant known for its vast selection of home goods and famous 20% off coupons, Bed Bath & Beyond suffered from declining foot traffic, supply chain issues and increased competition from online retailers.
The partnership with Kirkland’s is a crucial component of Beyond’s strategy to bring the brand back to physical retail spaces in a more efficient, neighborhood-focused format.
The smaller stores will reflect a shift in consumer shopping habits and a focus on localized, experiential retail.
“Through this strategic partnership, we are committed to leveraging the strengths of each company to drive long-term sustainable growth as we work together to build the omni-channel strategy across our family of brands,” said Marcus Lemonis, executive chairman of Beyond.
Beyond’s expansion efforts extend beyond Bed Bath & Beyond.
Earlier this week, the company announced an agreement with BBBY Acquisition Co. LLC to acquire the global rights to Buy Buy Baby for $5 million.
The baby-focused brand, once a subsidiary of Bed Bath & Beyond, was a popular destination for baby gear and registry services before the bankruptcy filing.
As Kirkland’s moves forward with additional capital and new opportunities for growth, Sullivan emphasized the company’s focus on maximizing the value of the partnership and improving profitability.
The retailer currently operates 317 stores across 35 states, positioning itself for a revitalized retail presence under its expanded role within Beyond’s portfolio.
