NEW YORK — Bed Bath & Beyond is near you after going out of business last year. But this time, it’s taking up space at a rival.
Beyond Inc., which bought the out of bankruptcy, is investing $40 million in the Container Store and giving the home goods and former competitor a much-needed lifeline as it struggles with its own financial issues.
As part of the investment, Bed Bath & Beyond branded kitchen, bath and bedroom products will soon be sold at the Container Store’s 102 locations.
The Container Store just got a financial lifeline from former rival Bed Bath & Beyond.
The partnership aims to “improve customer experience utilizing both the iconic†Bed Bath & Beyond and the Container Store names, a press release said, which are two of the most recognizable names in shopping that have fallen into a financial mess in recent years.
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In May, the Container Store began a strategic review of its business as it struggles with slumping sales and hasn’t posted a profit in three years. A few months later, the chain said it would stop offering financial guidance as it searched for help.
For Bed Bath & Beyond (), its rebirth from a bankrupt physical retailer to an e-commerce giant hasn’t lived up to its expectations. Last year, its name and digital assets were purchased by , prompting parent company Beyond Inc. to ditch the Overstock brand. However, that in July.
“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.
Shares of the Container Store () soared 40% in premarket trading Wednesday.
