Bed Bath & Beyond purchases Kirkland's Home for $10 million, officially acquiring the home goods retailer.
Bed Bath & Beyond Expands Retail Portfolio with Acquisition of Kirkland's Home
In a significant move to restructure and revitalize its business, Bed Bath & Beyond Inc. has completed a $10 million acquisition of the Kirkland's Home trade name and brand assets from The Brand House Collective. The deal, finalized in 2023, marks a strategic expansion for Bed Bath & Beyond Inc., allowing the company to enter a new market segment - wholesale.
The acquisition gives Bed Bath & Beyond Inc. the ability to nominate new board members for Kirkland's and acquire its trademarks and domain names for $5 million. The company plans to license these trademarks back to The Brand House Collective.
Kirkland's Home will become part of Bed Bath & Beyond Inc.'s portfolio of retail brands, which includes Bed Bath & Beyond, Overstock, and BuyBaby. The first store under this partnership opened this August, converting an old Kirkland's Home location. Five neighborhood small-format Bed Bath & Beyond stores are also set to open under this partnership.
In the same announcement, Bed Bath & Beyond Inc. agreed to a $5.2 million expansion of an existing credit facility with Kirkland's. The revenue-related fee structure for Kirkland's Home under the new ownership has not been specified in the press release.
Bed Bath & Beyond Executive Chairman Marcus Lemonis expressed excitement about the partnership's success. However, the company did not immediately respond to Retail Dive's request for comment regarding the acquisition.
The acquisition of Kirkland's Home is significant as it will allow Bed Bath & Beyond Inc. to enter a new market segment. With this move, the company aims to expand Kirkland's Home into the wholesale market for the first time. The store is accepting the old coupons Bed Bath & Beyond was once known for, signalling a commitment to maintaining the brand's heritage.
The strategic partnership between Bed Bath & Beyond Inc. and Kirkland's Home began in October. The deal allows Bed Bath & Beyond Inc. to acquire up to 65% of Kirkland's outstanding capital stock, but the details of this aspect of the deal have not been disclosed.
This acquisition is the latest move by Bed Bath & Beyond Inc. to restructure and revitalize its business. As the company navigates the challenges of the retail industry, it continues to seek opportunities for growth and innovation.
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