Updated October 2026
When we first wrote about Bed Bath & Beyond in early 2020, the chain was closing dozens of stores as sales slid. Few expected what came next: bankruptcy, the closure of every store, and then an unlikely comeback under new owners. This updated article tells the full story and draws out lessons every small retailer can use.
Timeline: from 1,000 stores to zero, and back
Table of Contents
| When | What happened |
|---|---|
| Peak years | Bed Bath & Beyond grew to more than 1,000 stores, a category-defining home goods "big box" known for its famous 20%-off coupons |
| 2020 | The company announced dozens of store closings as sales fell and competition from online retailers grew |
| April 2023 | Filed for bankruptcy, then closed all 360 remaining stores within a few months |
| 2023 | Overstock bought the brand’s intellectual property for $21.5 million, keeping the name alive online, and later renamed itself Beyond, Inc. |
| 2024 | Beyond invested in retail partnerships, including a deal with The Container Store and financing for home décor chain Kirkland’s |
| August 2025 | The first Bed Bath & Beyond Home store opened in Brentwood, Tennessee, in a converted Kirkland’s location |
| November 2025 | A merger agreement was announced to acquire The Brand House Collective (formerly Kirkland’s), valued at about $26.8 million, with about 250 Kirkland’s stores planned to become Bed Bath & Beyond locations and more than 40 underperforming stores set to close |
| 2026 | The company is pursuing an "Everything Home" strategy combining Bed Bath & Beyond, Overstock, Kirkland’s and buybuy Baby brands with home services |
What the 2020 store closings were telling us
In early 2020, when the chain announced it was closing dozens of stores, the company described the moves as part of a turnaround: shrinking an oversized store base, investing in digital and refreshing its brands. In hindsight, those closings were an early signal rather than a fix. Closing weak stores can help a healthy business, but it can’t solve deeper problems with what customers want and how they prefer to shop.
For a small business owner, the parallel is cutting costs without fixing the core offer. Trimming hours or staff may buy time, but lasting recovery usually requires changing what you sell, how you sell it, or who you sell to.
Why Bed Bath & Beyond failed
Analysts and reporters have pointed to several widely discussed factors behind the collapse:
- Slow response to online shopping. Customers moved to Amazon, Target, Walmart and specialty sites, while the chain’s e-commerce and stores lagged behind.
- Cluttered, tired stores. The famous floor-to-ceiling merchandise became harder to shop as competitors offered cleaner experiences.
- Coupon dependence. Constant 20%-off coupons trained customers never to pay full price, squeezing margins.
- A risky private-label pivot. A push to replace popular national brands with in-house brands left shelves without products customers came for.
- Inventory and supply problems. Empty shelves drove shoppers away during a critical period.
- Financial strain. Heavy spending on share buybacks in earlier years left less cushion when sales fell.
No single mistake caused the failure; it was the combination, over years, of losing touch with customers while finances weakened.
Why the brand is coming back
Bankruptcy doesn’t erase a famous name. Overstock saw value in Bed Bath & Beyond’s brand recognition and switched its own name to the brand. The comeback strategy is notably different from the old model:
- Smaller stores converted from existing Kirkland’s locations rather than giant new big-box stores.
- A blend of home décor and essentials, combining Kirkland’s strength in décor with Bed Bath & Beyond’s reputation for kitchen and bath basics.
- Online and in-store together, with stores supporting a strong e-commerce business.
- Lower cost of entry: converting existing leases and staff reduces the risk of opening new stores.
Early converted stores reported double-digit sales growth after reopening, according to The Brand House Collective. Whether the comeback succeeds long term remains to be seen.
Part of a wider retail shakeout
Bed Bath & Beyond wasn’t alone. Over the past several years, many well-known chains have filed for bankruptcy, closed stores or shrunk dramatically. Some, like Big Lots, saw stores reopen under new owners, much like Bed Bath & Beyond. The common threads are familiar: competition from online retailers and big discounters, heavy debt, and formats that didn’t evolve with customers.
At the same time, other retailers have thrived by offering something clear: very low prices, a curated selection, a great in-store experience, or convenience. For small businesses, the lesson isn’t that physical retail is dead, but that a muddled offer is.
How small retailers can compete with Amazon and big chains
- Curate, don’t compete on everything. A focused selection chosen with expertise beats an endless aisle of options.
- Offer expertise and service. Advice, demonstrations, fittings, repairs and personal recommendations are hard for online giants to match.
- Create experiences. Workshops, tastings, classes and community events bring people in and build loyalty.
- Use local advantages: same-day pickup, local delivery and relationships with nearby customers.
- Build a list. Collect emails and phone numbers so you can reach customers directly without paying for ads every time.
- Sell online too, even simply, so customers can browse before visiting or buy when they can’t.
Warning signs for a struggling store
Bed Bath & Beyond showed many of these warning signs well before bankruptcy. For any retailer, watch for:
- Falling sales per customer or fewer repeat visits.
- Rising reliance on discounts to hit sales targets.
- Inventory problems: too much slow stock, or gaps in best-sellers.
- Shrinking margins as costs rise faster than prices.
- Growing debt or late supplier payments.
- Customer complaints about experience, service or selection.
Spotting these early gives you time to adjust before problems compound.
Lessons for small retailers
1. Know why customers come to you
Bed Bath & Beyond lost customers when it removed the brands they wanted. Before changing your product mix, find out what your best customers buy and why.
2. Be careful with discounts
Discounts bring traffic but can train customers to wait for sales. Use them strategically, such as for first purchases, slow seasons or clearing old stock, rather than constantly. See our guide to pricing your product or service.
3. Make shopping easy and pleasant
Clean layouts, clear signs, helpful staff and in-stock essentials matter. Small shops can win on experience where big chains struggle.
4. Sell online and in person
Customers research online even when they buy in stores. A simple website, accurate Google Business Profile and online ordering or local delivery can protect a small retailer. See our online selling guide and niche online store guide.
5. Watch your cash and inventory
Cash flow problems and empty shelves feed each other. Track inventory turnover and keep a cash cushion. See our guide to taxes and bookkeeping.
6. Brands outlast businesses
A trusted name has value even after a business struggles. Build your brand through quality, service and consistency; it’s an asset you can grow and, one day, sell.
Opportunities for small businesses when big retailers close
When a big chain closes, local opportunities appear:
- Customers look for new places to buy kitchen, bath and home goods, especially quality items and gifts.
- Vacant storefronts in shopping centers may come with landlord incentives such as reduced rent.
- Suppliers seek new retail partners for products the chain used to carry.
- Local home services, such as installation, organizing and interior styling, can fill gaps.
- Gift and registry services for weddings and new babies, once a core reason people visited big home stores, are open to local shops that offer personal service.
Explore retail and home-related ideas in our business idea finder.
Frequently asked questions
Is Bed Bath & Beyond still in business? The original company went bankrupt in 2023, but the brand continues under new ownership online and through new Bed Bath & Beyond Home stores converted from Kirkland’s locations.
Do old Bed Bath & Beyond coupons still work? The new Bed Bath & Beyond Home stores were reported to honor original coupons when they opened; check current store policies.
How many Bed Bath & Beyond stores will there be? Plans announced in 2025 called for about 250 Kirkland’s stores to become Bed Bath & Beyond locations over roughly two years, but retail plans often change.
What happened to buybuy Baby? The buybuy Baby brand was sold separately during the bankruptcy and has since been brought into the new owner’s family of home brands, with physical stores discussed as a possibility.
Next steps
Read our guides to increasing sales for a small business, keeping customers coming back and the e-commerce industry profile.
Based on news reports and company statements through October 2026. Retail plans can change; check current company announcements.
Sources
- Fox Television Stations, Bed Bath & Beyond is attempting a comeback: what we know (April 2026)
- Yahoo Finance / USA Today, When will Kirkland's stores become Bed Bath & Beyond?
- Digital Commerce 360, Beyond Inc. and Kirkland's partnership
- Seeking Alpha, The return of Bed Bath & Beyond (August 2025)
Last reviewed October 20, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
It’s definitely not a good sign that such an iconic bed bath and beyond is closing its stores. I hope U.S. economy recovers and these stores open up and create jobs.
Recently another Bed Bath and Beyond store has closed in my city. You list of stores is already updated. Thanks!