Bed Bath & Beyond announced a definitive merger agreement to acquire The Brand House Collective, Inc. for approximately $26.8 million. The deal will close in the first quarter of 2026 and will be executed through an exchange of 0.1993 Bed Bath & Beyond common shares for each share of The Brand House Collective, creating a combined entity that will operate under the Bed Bath & Beyond brand umbrella.
The acquisition is a core element of Bed Bath & Beyond’s “Everything Home” strategy, which seeks to transform the retailer into a comprehensive destination for home goods. By adding The Brand House Collective’s high‑conversion retail format and its portfolio of brands—including Kirkland’s Home—the company aims to accelerate omnichannel growth, expand its footprint, and shift toward a more asset‑light model.
Bed Bath & Beyond’s Q3 2025 results provide context for the transaction. The company reported a net loss of $4.5 million on revenue of $257.19 million, a decline of 17% year‑over‑year. Despite the loss, gross margin improved, and the company highlighted disciplined cost management. The Brand House Collective, formerly Kirkland’s Inc., posted net sales of $441.4 million in fiscal 2024 with an operating loss of $14.0 million, underscoring the need for a turnaround that the acquisition is designed to support.
Management estimates that the combined company will unlock more than $20 million in annual cost savings. The savings will come from eliminating duplicated functions, integrating merchandising, logistics, and technology platforms, and leveraging the high‑conversion store format to drive higher sales per square foot.
Investors reacted positively to the announcement, citing the strategic fit and the potential for significant cost synergies. The deal is expected to strengthen Bed Bath & Beyond’s competitive position and accelerate its transition to a more profitable, asset‑light model.
Marcus Lemonis, Executive Chairman, emphasized the strategic importance of the deal: “This acquisition is a big step in building a profitable, growth‑oriented Everything Home company. The power of this deal comes from a more efficient and productive engagement with the consumer, while extracting over $20 million in duplicate costs.” Amy Sullivan, who will lead the new Beyond Retail Group division, added that her experience at The Brand House Collective will help drive the integration and growth of the combined business.
While the acquisition offers clear upside, Bed Bath & Beyond continues to face headwinds. The company’s Q3 2025 results highlighted ongoing revenue decline, cash burn, and negative EBITDA, and analysts remain cautious about the pace of profitability improvement. Nonetheless, the acquisition is positioned to address these challenges by expanding the brand portfolio, improving operational efficiency, and creating a stronger foundation for long‑term growth.
In summary, the $26.8 million acquisition of The Brand House Collective represents a strategic pivot for Bed Bath & Beyond, aligning its portfolio with the Everything Home vision, delivering substantial cost synergies, and setting the stage for a more agile, profitable future.
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