Kirkland’s Home, a staple in American home décor, is entering a bold new chapter that could redefine the brand and its customer experience nationwide. As the holiday season nears—a make-or-break period for retailers—the company’s sweeping decisions to close stores and rebrand hundreds more have sparked curiosity and concern among shoppers, employees, and investors.
CEO Amy Sullivan emphasized, “We are positioned to leverage our collective family of brands as we drive towards our path to profitability.” Let’s look into this deeper to see how Kirkland’s plans to reshape its stores and future.
A Strategic Shift Begins
In February 2025, Kirkland’s announced it would close 19 stores across 17 states, roughly 6% of its 317 locations. This move was strategic rather than reactive: the company reported $148.9 million in fourth-quarter net sales and $7.9 million in net income, indicating financial stability. CEO Amy Sullivan explained that closures were aimed at aligning real estate investments with new brand standards and converting select stores to more profitable formats.
By September, Kirkland’s expanded its closure plans. Sullivan confirmed 25 additional locations would shutter by January due to lease expirations, bringing total closures to at least 44 stores. Industry estimates suggest 375 to 660 jobs could be affected. Employees have expressed concerns online over unclear communication about closures and benefits, highlighting the human side of this corporate transformation.
Partnerships and Rebranding Take Center Stage
Kirkland’s deepened its transformation with a deal involving Beyond Inc., selling the Kirkland’s Home intellectual property for $5 million upfront. This move allowed the company to operate other major brands, including Bed Bath & Beyond, Overstock, and buybuy Baby. On June 16, the company officially rebranded as The Brand House Collective, Inc., accelerating plans to convert 75 stores to Bed Bath & Beyond Home by 2026.
The transformation operates in three tiers: first, high-performing stores convert to Bed Bath & Beyond Home; second, remaining Kirkland’s stores enhance product assortments; third, underperforming locations close alongside lease expirations. These changes aim to improve profit margins by focusing on brands with higher price points and broader appeal, creating a modernized footprint across the country.
Store Conversions and Customer Experience
The first Bed Bath & Beyond Home store in Brentwood, Tennessee, opened on August 8, 2025, exceeding expectations. Five more locations are planned in the greater Nashville market, with nationwide conversions continuing over the next 24 months. Remaining Kirkland’s stores will integrate Bed Bath & Beyond products, updating assortments and signage to offer shoppers a broader, margin-focused experience.
For customers, legacy Kirkland’s items will still be available inside converted stores and through wholesale channels. CEO Sullivan said, “We are unlocking new opportunities by monetizing the Kirkland’s Home name, both inside Bed Bath & Beyond stores and through wholesale partnerships with independent retailers, creating an exciting new chapter for a brand with a 60-year legacy.” The approach balances innovation with continuity for loyal shoppers.
Financial Pressures and Market Response
The transition has not been without hurdles. In Q2 2025, Kirkland’s reported $75.8 million in net sales, down 12.2% from the prior year, alongside a $20.2 million net loss. Tornado damage at a distribution center and deliberate inventory liquidation ahead of store conversions contributed to the shortfall.
CEO Sullivan noted, “Our Q2 results reflect two major events that weighed heavily on the quarter…creating near-term pressure on sales, particularly in e-commerce.”
Despite these challenges, approximately 309 stores remain operational, with 250 to 275 set for eventual conversion. In September, Bed Bath & Beyond completed its $10 million purchase of the Kirkland’s Home brand, allowing Kirkland’s to focus on managing multiple brands and generating revenue through wholesale partnerships, while preserving the brand’s legacy in independent retail channels.
Employment and Industry Impact
The closure of 25 stores by January adds to earlier reductions, creating significant uncertainty for employees. The broader retail sector has also faced turbulence, with nearly 76,000 jobs lost in the first five months of 2025—a 274% increase from 2024. Workers at affected locations have voiced frustration online over limited communication about severance, transfers, and benefits.
The restructuring extends beyond store closures. Coordinating hundreds of store conversions while maintaining operations has created logistical and workforce challenges, highlighting the human cost of the company’s ambitious plans. How Kirkland’s manages this phase could influence employee morale and public perception for years to come.
Looking Ahead: Risks and Opportunities
The Brand House Collective’s stock has been volatile, with market capitalization between $32 and $36 million and shares in the $1.46–$1.55 range. Investors are watching as the company executes its 24-month conversion strategy. While Bed Bath & Beyond’s prior restructuring in 2023 raises concerns, early successes—like the Brentwood store—offer reason for optimism.
As the holiday season approaches, Kirkland’s faces a crucial test: retaining customer loyalty, achieving profitable growth, and managing the human impact of closures and conversions. The coming months will determine whether the combined strength of Kirkland’s infrastructure and Bed Bath & Beyond’s brand can thrive in a rapidly evolving retail landscape. The stakes are high for employees, shareholders, and shoppers alike.