Quick Facts
- Bed Bath & Beyond agreed to acquire The Container Store for $150 million in stock and convertible notes
- The Container Store’s 100 locations will be rebranded as ‘The Container Store/Bed Bath & Beyond’ locations
- The acquisition is expected to deliver $40 million in annualized cost savings within 12 to 18 months
Bed Bath & Beyond agreed to acquire The Container Store for $150 million, just months after the home organization retailer emerged from bankruptcy protection.
The transaction includes The Container Store’s Sweden-based Elfa and Chicago-based Closet Works businesses. The deal is structured with common stock at $7.00 per share and convertible notes at an initial conversion price of $9.10 per share.
The Container Store filed for Chapter 11 bankruptcy on December 22, 2024, and emerged 35 days later after eliminating $88 million in debt. The company operates around 100 stores nationwide with over 2.2 million square feet of retail space.
Marcus Lemonis, Executive Chairman and CEO of Bed Bath & Beyond, said the acquisition fills critical gaps in both retail and home services strategy. “In 2024, we had the opportunity to invest and chose not to move forward due to my concerns around leadership, strategic direction of the brand, and the health of the company’s balance sheet,” Lemonis said.
The Container Store locations will be rebranded as The Container Store/Bed Bath & Beyond. The 21,000 square foot locations will offer merchandise across bed, bath, storage, kitchen, and entertaining categories. The format will introduce flooring, lighting, kitchen, laundry room, and bathroom cabinetry.
Bed Bath & Beyond expects the acquisition to deliver at least $40 million in annualized cost savings within 12 to 18 months from integrating Kirkland’s Home, The Container Store, Elfa, and Closet Works.
The deal supports Bed Bath & Beyond’s three-pillar strategy spanning omnichannel retail, products and services, and home services. Container Store Chief Financial Officer Brian LaRose will replace Adrianne Lee as CFO at Bed Bath & Beyond.
Retail consultant Rudy Milian said Container Store locations have “very good lease terms” next to top malls. Adding Bed Bath & Beyond merchandise “can widen the scope of shoppers it attracts,” Milian told CoStar News.
David Silverman of Fitch Ratings said Lemonis is building a home-goods retail portfolio. With the demise of the brick-and-mortar Bed Bath & Beyond chain, “there is a space in the market that this company could fill,” Silverman said.
The transaction is expected to close in July 2026.
Read more: Bed Bath & Beyond agrees to acquire The Container Store for $150M
