Another Merger of Iconic Brands

What do you get when you put two struggling entities together? Do you remember when Sears and K-Mart did that? Ultimately, it became a nightmare for both long-time brands.

 

I wrote about this in my Commentary, Say Good-Bye to Yesterday – Again. I discussed how after the merger occurred in 2005, there were 2,500 stores.

But after the bankruptcy, there were 231 stores remaining. And as of this October 20, there will be only one left. In Miami.

And now, is history about to repeat itself? It was reported today by CNN Business and Yahoo News that Bed Bath & Beyond is returning at The Container Store. Both companies announced a strategic partnership leveraging both of these iconic brands.

Bed Bath and Beyond withdrew from its arrangement with Overstock.com in July, while The Container Store was struggling with its options with its current business model since May. Beyond Inc is investing $40 million in The Container Store and giving the home goods and former competitor a much-needed lifeline.

The arrangement includes Bed Bath & Beyond selling its branded kitchen, bath and bedroom products at The Container Store’s 102 locations.

“Through the licensing of the Bed Bath & Beyond brand, The Container Store will enhance their store format and current general merchandise offering by incorporating the most popular Bed Bath & Beyond products to drive improved financial performance while providing customers a more comprehensive product offering for their home and organizational needs,” said Marcus Lemonis, Beyond Inc.’s executive chairman, in a release.

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.

Following a refinancing or amendment of the Company’s credit facilities and the approval by shareholders pursuant to a shareholder vote in Q4 2024 or Q1 2025, and subject to certain other conditions, the arrangement will commence once paperwork is agreed to by the SEC.

Let’s hope for a more successful outcome than Eddie Lambert had when he destroyed the Sears/K-Mart fiasco.