Why Did BBBY Stock Jump Nearly 4% In After-Hours Trading?

• Bed Bath & Beyond is acquiring The Brand House Collective, formerly known as Kirkland’s.
• TBHC operates Bed Bath’s physical stores, and as part of the deal, over 40 underperforming or non-core stores will be closed.
• The combined company expects to unlock at least $20 million in cost eliminations and drive profitability, Bed Bath said.

Bed Bath & Beyond, Inc. on Monday announced that it is acquiring The Brand House Collective, Inc. (TBHC) in a share deal with an implied equity value of about $26.8 million, sending Bed Bath’s stock 3.6% higher in the after-market session. Brand House’s stock declined 9%.

Deal Terms

Under the deal, TBHC’s shareholders will receive 0.1993 shares of Bed Bath for each of their Brand House shares. Bed Bath already holds about 40% of TBHC’s outstanding shares. 

TBHC, formerly known as Kirkland’s until its rebrand and reorganization in July, is a retail store chain selling home decor, furnishings, and lifestyle products. 

Earlier this year, Bed Bath acquired TBHC’s intellectual property, as well as a 40% stake, in a deal that made TBHC the operator of Bed Bath & Beyond's physical stores, including buybuy Baby, Overstock, and Kirkland's Home.

"This acquisition is a big step in building a profitable, growth-oriented Everything Home company,” Bed Bath CEO Marcus Lemonis said in a statement. The combined company expects to unlock at least $20 million in cost eliminations, he added.

As part of the plan, more than 40 underperforming or non-strategic stores have been identified for closure in early 2026.

Retail’s View

On Stocktwits, the retail sentiment for BBBY remained ‘neutral’ as of late Monday, unchanged from the previous day. Notably, the stock has declined sharply in recent weeks. It is down by over 50% from a recent peak on Oct. 6, but is still up about 12% for the year.

“Call it OSTK, BYON, BBBY, I keep telling everyone it’s the same sh** just a different smell,” a user said, referring to the many reorganizations and name changes at Bed Bath.

The company reported third-quarter results at the end of last month. Net revenue decreased 17% to $257 million. Net loss narrowed to $4.5 million, a 93% improvement from the year-ago quarter. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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