Bed Bath & Beyond Returns in Partnership with Kirkland’s

Bed, Bath & Beyond and Kirkland’s have entered a partnership that will bring back physical Bed Bath & Beyond stores more than a year after the retailer filed for bankruptcy.

As reported by The Wall Street Journal, “Midvale, Utah-based Beyond, which owns the Bed Bath & Beyond, Overstock, and Zulilly brands will invest $25 million in Kirkland’s in a combined debt and equity transaction, in exchange of a licensee agreement for new, smaller format Bed Bath & Beyond locations across the U.S., the companies said Monday. Kirkland’s will become the exclusive brick-and-mortar operator of Beyond while the companies work to cut costs and improve inventory management.”

Just one week prior, Beyond invested $40 million in The Container Store.

As part of the new agreement, Beyond will extend a $17 million term loan to Kirkland’s, enabling the company to repay its existing loan from Gordon Brothers. According to the report, half of the loan will be convertible into Kirkland’s shares.

Kirkland’s Initiative Should Benefit Both Companies

Beyond and home-decor retailer Kirkland’s have entered a partnership that will bring back physical Bed Bath & Beyond stores more than a year after the retailer filed for bankruptcy https://t.co/UboThFLf6N https://t.co/UboThFLf6N

— The Wall Street Journal (@WSJ) October 21, 2024

Per a Kirkland’s press release, the company announced an initiative that should benefit both Kirkland’s and Bed, Bath & Beyond. The plan is for smaller stores, giving the stores a “neighborhood” feel.

These stores will be no more than 15,000 square feet versus the larger footprint of previous Bed, Bath & Beyond stores. These smaller brick-and-mortar stores will feature an assortment of specialty items tailored to the markets of the store’s locations.

“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,” said Amy Sullivan, CEO of Kirkland’s Inc. “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.”

Sullivan continued, “As we have demonstrated this year, we are a merchant-led organization focused on great product design and development with a strong and diverse sourcing strategy. We are also operators who leverage our brick-and-mortar footprint and channel expertise to create a memorable customer experience. We expect the investment from Beyond will not only enhance our financial performance but also provide meaningful opportunities to introduce Kirkland’s to new customers in a cost-efficient manner while we continue to re-engage our core customer and extend our reach across multiple formats. We plan to leverage the core strengths of the Beyond team by accessing its digital and technical expertise.”