A staple of main streets and shopping malls is set to have a revival.
Kirkland’s Home announced Tuesday that it will rebrand between 250 and 275 of its stores in 35 states as Bed Bath & Beyond Home locations over the next two years.
While the majority of its store fleet will make the transition, about 25 Kirkland’s locations are slated to close by January.
The move follows a deal in which The Brand House Collective, formerly Kirkland’s Inc, sold the Kirkland’s Home intellectual property to Bed Bath & Beyond Inc. for $10 million, finalized September 15. As part of the sale, the company arranged a $20 million expansion of its credit agreement to support its store conversion and channel expansion plans.
The Brand House Collective plans to open five additional Bed Bath & Beyond Home stores in the greater Nashville area this fiscal year, CEO Amy Sullivan said during a call with analysts on Tuesday.
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Bed Bath & Beyond Inc. itself has changed in recent years. After declaring bankruptcy in 2023 and closing all its stores, the company, under its new ownership by Overstock, revived the Bed Bath & Beyond name this August. It also owns Overstock and BuyBuy Baby, and has added a portfolio of blockchain assets.
The first two Bed Bath & Beyond Home stores under this conversion effort have already opened in Brentwood and Spring Hill, Tennessee
Details on which locations will close or convert beyond those in Tennessee have not been released.
Store conversion costs are being kept relatively low. Sullivan estimated each conversion will cost less than $100,000, a figure intended to allow rapid scaling while maximizing return on capital.
Bed Bath & Beyond Home stores will honor legacy Bed Bath & Beyond coupons, the company said.
Sullivan described the format as one that preserves the “house of brands” legacy of Bed Bath & Beyond, combining trusted national names in bedroom, bathroom, and kitchen goods with seasonal home décor and furnishings under Kirkland’s Home brand.
Marcus Lemonis, executive chairman and principal executive officer of Bed Bath & Beyond Inc., said in a news release that the conversion strategy underscores the company’s belief in the power of omni‑channel retail and the importance of extending its national footprint through both brick‑and‑mortar and wholesale channels.
Financially, The Brand House Collective reported second‑quarter sales at $75.8 million, down from $86.3 million the previous year. Gross profit also dropped, to $12.4 million from $17.7 million.
The company ended the quarter with 309 stores after closing five during the period.
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