Bed Bath & Beyond is acquiring The Container Store for $150 million

Two specialty retailers with a recent history of bankruptcy are teaming up.

Bed Bath & Beyond Inc. is acquiring The Container Store, along with its owned brands Elfa and Closet Works, for $150 million. In a letter to shareholders, Bed Bath & Beyond CEO Marcus Lemonis called the purchase “a critical step for our company” that will fill “critical gaps in both our retail and home services strategy.”

The household goods store, now primarily online, has been eyeing The Container Store since 2024, when it passed on an opportunity to invest due to concerns around “leadership, strategic direction of the brand, and the health of the company’s balance sheet.” Lemonis wrote.

Sure enough, The Container Store entered into bankruptcy at the end of that year and, during a brief restructuring process, shed $88 million in debt. It’s been just over a year since the company exited bankruptcy, and Lemonis clearly still likes what he sees.

“What I saw over time was a business with strong brand equity, a desirable physical footprint, and, most importantly, a group of teammates who care deeply about the customer,” he wrote.

The acquisition comes on the heels of another home brands acquisition, as Bed Bath & Beyond works to reestablish a base of brick-and-mortar stores. The company bought Kirkland’s Home for $10 million last September, and now that brand is set to operate more than 230 locations across the country. These stores will provide a “flexible store base that can be integrated into our broader platform,” according to the letter.

The Container Store purchase brings another 100 physical locations, which Lemonis plans to improve with an expanded assortment, additional brands, and a “more comprehensive experience for the homeowner,” supplementing modular and custom closets with flooring, lighting, kitchen, laundry, and bathroom cabinetry.

The stores will be co-branded The Container Store / Bed Bath & Beyond.

“The strategy is set,” Lemonis wrote. “Now it is about execution: integrating these businesses, unlocking their full potential, and delivering measurable results.”