Kirkland's converts its fleet to Bed Bath & Beyond and enters the wholesale business
The Brand House Collective will rebrand 250-275 Kirkland's stores as Bed Bath & Beyond, close the rest, and sell wholesale for the first time.
What was changed
In September 2025, Kirkland's Home announced it would convert all of its stores into Bed Bath & Beyond locations over the next two years. Most of the fleet is expected to remain intact through the transition, but the company plans to close 25 Kirkland's locations by January. The announcement came after the first Bed Bath & Beyond Home store opened in August and just one day after Bed Bath & Beyond Inc. finalized a $10 million purchase of the Kirkland's Home brand assets and trade name. The companies said Kirkland's would also expand into the wholesale market for the first time to grow revenue.
The operator, The Brand House Collective (formerly Kirkland's, Inc.), expects to open five more Bed Bath & Beyond Home stores in the greater Nashville market this fiscal year, CEO Amy Sullivan told analysts. About 250 to 275 of the existing 309 Kirkland's stores are expected to remain as Bed Bath & Beyond stores, and the companies are looking for other locations. The backdrop: Q2 net sales dropped 12% year over year to $75.8 million on a 9.7% comps decline and roughly 5% fewer stores, the net loss grew 39% to $20.2 million, and gross margin fell to 16.3% of sales from 20.5%.
Ties between the two deepened alongside the rebrand. The IP deal closed for double the price initially announced in May, the credit agreement now allows a delayed-draw term loan from Bed Bath & Beyond Inc. of up to $20 million, and Beyond may own up to 75% of The Brand House Collective, up from a 65% cap. Since July 28 it calls itself a multi-brand merchandising, supply chain and retail operator managing the Bed Bath & Beyond Inc. portfolio and running the Bed Bath & Beyond Home website, with the first new BuyBuy Baby store planned for fiscal 2026 and Overstock plans in development.
Why it worked
Kirkland's standalone economics were slipping: Q2 net sales down 12% to $75.8 million, comps down 9.7%, and the net loss up 39% to $20.2 million.
The Bed Bath & Beyond name carries far more shopper recognition than Kirkland's, so rebranding the fleet imports demand the homegrown brand no longer draws.
Selling the trademark for $10 million and gaining access to up to $20 million in term loans from Beyond funds the transition without a wider capital raise.
Becoming Beyond's multi-brand retail operator — running its brands, websites and soon BuyBuy Baby — gives the company a job beyond its own shrinking fleet.
What can be applied
When a legacy brand's own name no longer pulls shoppers, selling the trademark to a stronger platform and running that platform's brands can be the fastest way for a retailer to stay alive.
Aftermath
The conversion runs over roughly two years, with 25 Kirkland's closures by January and five more Bed Bath & Beyond Home stores opening in the Nashville market this fiscal year. The Brand House Collective's sales were still falling when the plan was announced, and Bed Bath & Beyond Inc. did not respond to Retail Dive's requests for clarification on the doubled IP price. Whether rebranded stores outsell the old Kirkland's fleet, and whether the wholesale pivot adds revenue, is not yet known.