Everyone who grew up near a shopping center can relate to being dragged by their mother to every nearby home goods store on a Saturday morning, most likely after being bribed with brunch at a local breakfast spot.
Although it might have been annoying at the time, some now reminisce fondly about those memories, and many have probably gone on to willingly subject their children to the same thing as adults.
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Due to the economy's uncertain state big retailers have suffered the repercussions, reporting declining revenues, slower store traffic, and even multiple location closures.
Related: Formerly bankrupt restaurant chain reopens stores and delivery
This year alone, 10 well-known restaurant chains have filed for bankruptcy, and multiple retailers have announced store closures, including Macy's (M) with 120 locations and Walgreens (WBA) with 1,200.
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Bed Bath & Beyond exits Chapter 11 bankruptcy after being acquired
After over 50 years of business, Bed Bath & Beyond filed for Chapter 11 bankruptcy in April last year and was forced to close all its existing stores. At the time of the filing, the company had 360 Bed Bath & Beyond stores and 120 buybuy BABY locations.
Related: Formerly bankrupt retail chain closing all remaining stores
To exit bankruptcy, Bed Bath & Beyond needed to find a buyer, or it would go out of business and cease to exist, as it was $1.8 billion deep in long-term debt. In the meantime, it obtained a $240 million loan to continue with operations during the bankruptcy.
In June 2023, the online home goods retailer Overstock acquired Bed Bath & Beyond through a winning bid sale for $21.5 million, which it paid fully in cash. The transaction excluded Bed Bath & Beyond's brick-and-mortar business and the buybuy BABY brand.
This acquisition ended all physical Bed Bath & Beyond locations and made the brand a fully online retailer.
Overstock changed its company name in November 2023, and it is currently known as Beyond Inc.
Bed Bath & Beyond announces partnership with rival retailer
On Tuesday, Bed Bath & Beyond (BBBY) and The Container Store (TCS) announced they had joined forces to enter a strategic partnership that aimed to improve their customer experience by offering both brands in one place.
According to the statement, Beyond Inc. (OSTK) agreed to invest $40 million in its former rival company, The Container Store, through a preferred equity transaction to showcase and sell Bed Bath & Beyond products in 102 of its locations.
"The companies intend for the partnership to position The Container Store to return to profitable comparable store growth over time by utilizing and benefitting from Beyond’s intellectual property, customer data, network of brands, and affiliate relationships," stated the announcement.
The Container Store is a home goods retailer specializing in organization solutions products and in-home services. Bed Bath & Beyond, owned by Beyond Inc., is also a retail chain that sells home goods, including housewares, furniture, home decor, and more.
Both retail giants are in the home goods space and have very similar target audiences, making this new alliance a strategic business move to leverage growth, store traffic, and profitability for the two brands.
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Additionally, the partnership will offer customers a global loyalty program, which consists of multiple payment plans and options, as well as product insurance.
But, the partnership between both retailers extends beyond just their physical stores. The Container Store will also join Beyond's data platform to enhance customer analytics in both brands.
"It will allow us to expand our reach across our combined network and position us to leverage Beyond’s e-commerce expertise to further our own omnichannel tools and capabilities,” said Satish Malhotra, CEO of The Container Store.
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