Kirkland’s Home shocked loyal shoppers earlier this year by planning to close 19 underperforming stores in 17 states—a significant step in its sweeping brand overhaul.
The company’s filings explained the plan further: “Strategically converting stores to a more margin-accretive brand, augmenting the assortment strategy… and closing select locations to ensure our real estate investments align with our new standards.”
As the holiday season nears, what does this dramatic shift mean for local stores and loyal customers?
The Early Moves That Set the Stage
On February 18, 2025, Kirkland’s announced plans to close roughly 19 underperforming stores—around 6% of its 317 locations—as part of a major transformation. Q4 2024 results showed $148.9 million in net sales, $7.9 million in net income, and $0.51 earnings per share, highlighting that closures weren’t triggered by poor performance alone.
CEO Amy Sullivan noted, “We are positioned to leverage our collective family of brands as we drive towards our path to profitability.” However, these initial moves hinted at a deeper strategy beyond simple store closures.
Partnerships and Rebranding Take Shape
By May, Kirkland had deepened its relationship with Beyond Inc., selling Kirkland’s Home IP rights for $5 million upfront. This partnership allowed the retailer to operate brands like Bed Bath & Beyond, Overstock, and buybuy Baby while planning an ambitious corporate pivot.
On June 16, Kirkland’s, Inc. officially became The Brand House Collective, Inc. The rebrand included an accelerated store conversion plan targeting 75 Bed Bath & Beyond Home locations by 2026, with closure numbers updated to 19 stores.
What Strategic Conversion Really Means
Kirkland’s plan unfolds in three tiers. Tier 1 converts high-performing locations to Bed Bath & Beyond Home, aiming for 75 stores by 2026. The first opened in Brentwood, Tennessee, on August 5, 2025. The move targets a “more margin-accretive brand,” with higher price points and improved profit potential.
Tier 2 strengthens the remaining Kirkland stores by adding BB&B products and refining assortments. Tier 3 closes 19 underperforming locations, timed with lease expirations to avoid early termination costs. These careful steps show the company is balancing growth with discipline, but will this strategy resonate with shoppers as the holidays approach?
Which States Are Feeling the Impact?
Kirkland’s runs 317 stores across 35 states, but 19 closures affect just 17 states—averaging about 1 closure per affected state. The company hasn’t revealed which locations will close, keeping shoppers guessing.
Some shuttered locations sit mere miles from new Bed Bath & Beyond Home conversions, showing a strategic shuffle rather than wholesale exit. These closures profoundly reshape local retail landscapes.
Holiday Shopping Under Pressure
Kirkland’s faced a tough Q2 2025, ending August 2, with net sales of $75.8 million, down 12.2% from $86.3 million in Q2 2024. Net losses widened to $20.2 million, up 39% from a $14.5 million loss the year prior. Two major factors drove the decline: tornado damage at a distribution center on May 20 and intentional inventory liquidation ahead of store conversions.
CEO Amy Sullivan explained on September 16, 2025, “Our Q2 results reflect two major events that weighed heavily on the quarter…creating near-term pressure on sales, particularly in e-commerce.”
The $10 Million Brand Name Sale
On September 15, 2025, Bed Bath & Beyond completed its $10 million purchase of the Kirkland’s Home name and intellectual property, finalizing a two-stage deal that started in May with a $5 million upfront payment.
This unusual move lets a profitable retailer sell its 59-year-old identity while rebranding as The Brand House Collective, managing other companies’ brands instead of its own.
Bed Bath & Beyond plans to expand Kirkland’s presence through wholesale channels, bringing the home décor legacy to independent retailers nationwide.
Why Sell a Beloved Brand Name?
Amy Sullivan, CEO of The Brand House Collective, explained, “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 strategy combines financial infusion, with $10 million from the IP sale plus $20 million in credit expansion, and a pivot to a “brand operator” model. Kirkland’s now manages multiple brands, including Bed Bath & Beyond, Overstock, and BuyBuy Baby, while generating revenue through wholesale partnerships.
But what does this mean for customers and shareholders?
How Customers Will See Changes
All 309 remaining Kirkland’s stores are set to convert to Bed Bath & Beyond Home over the next 24 months, with the first Brentwood, Tennessee location opening August 5, 2025, and “exceeding expectations.” Five additional Nashville-area stores are expected to follow in 2025, with a goal of 250–275 conversions by 2027.
Shoppers will notice new signage, expanded product mixes combining Kirkland’s décor with classic BB&B categories, and higher price points under the “more margin-accretive” model. Legacy Kirkland’s items remain available inside BB&B stores and through wholesale channels.
Shareholders Weigh Risks and Rewards
Kirkland’s ticker changed from KIRK to TBHC under The Brand House Collective, with a current market capitalization of $33.47 million and a stock price of around $1.55 as of October 2025. The 52-week range spans $1.20 to $2.40, reflecting mixed investor sentiment.
The $10 million IP sale and $20 million credit expansion boost the balance sheet and fund growth, while wholesale revenue adds recurring income. Q2 2025 losses totaled $20.2 million, sales declined 12%, and the gross margin dropped to 16.3%. Will the 24-month store conversion plan deliver the returns shareholders expect?
Bankruptcy’s Shadow Looms Large
Bed Bath & Beyond emerged from bankruptcy in April 2023, closing over 1,000 stores and carrying $5.2 billion in debt. Beyond Inc. acquired the brand in June 2023, rebranding as Bed Bath & Beyond Inc.
Kirkland’s mixed performance adds pressure: Q4 2024 net income was $7.9M, Q1 2025 net loss was $8.83M, and Q2 2025 net loss was $20.2M. Declining margins and going-concern warnings raise the question: is reviving legacy brands a smart strategy or a risky repeat?
Stock Performance Reality
Kirkland’s/Brand House Collective stock has been volatile. Q4 2024 earnings miss triggered a 10.78% pre-market drop, while Q3 2024 earnings beat still saw a 9.07% fall. A three-month decline of 28.5% occurred, with current trading at around $1.55 and a 52-week range of $1.20 to $2.40.
Investors are watching closely: can store conversions and the $30 million financing plan reverse losses, improve margins, and restore confidence in the company’s long-term trajectory?
Holiday Season: The Ultimate Test
The Brand House Collective faces a delicate balance this holiday season, operating roughly 290–295 Kirkland’s stores while accelerating conversions to Bed Bath & Beyond Home. The Holidays will test customer loyalty as 24 stores close and inventory shifts ahead of the brand transition.
Q2 2025 losses totaled $20.2 million, with sales down 12% and comparable store sales down 9.7%. Tornado damage and inventory liquidation weighed heavily on the decision. Can shoppers adapt to the new format, or will the transition disrupt their holiday purchasing patterns?
The Converted Stores Mark the Next Chapter
The Brand House Collective plans to convert all 309 remaining Kirkland’s stores to Bed Bath & Beyond Home over 24 months, targeting 250–275 completed conversions. Five Nashville-area stores will convert this year, following the successful opening on August 5, in Brentwood, Tennessee.
Marcus Lemonis, Executive Chairman of Bed Bath & Beyond Inc., said, “The excitement around the Bed Bath & Beyond brand has been undeniable with the first of many store conversions.”
The Road Ahead for Kirkland’s and BB&B
The Brand House Collective faces a pivotal moment. With 24 stores closing, nearly 300 operating locations, and a 24-month plan to convert 250–275 stores to Bed Bath & Beyond Home, execution will determine success. Early wins, like the Brentwood store, show promise, but operational challenges, financial pressure, and holiday sales performance remain critical.
Investors, employees, and customers alike will watch closely as this rare retail pivot unfolds. Will the combined strength of Kirkland’s infrastructure and BB&B brand sustain growth, or will the ambitious transformation test the limits of even the most seasoned retail leadership?