Bed Bath & Beyond purchasing The Container Store for $150M
Bed Bath & Beyond Inc. is making a significant move in its continuing efforts to expand its business.
The company is acquiring home goods and storage products retailer The Container Store for $150 million in stock and convertible notes. The acquisition includes The Container Store’s Sweden-based Elfa customizable closet systems, shelving solutions, and space optimization products brand, as well as its Chicago-based custom closet and organizer provider Closet Works subsidiary.
In a letter posted on the Bed Bath & Beyond website, executive chairman and CEO Martin Lemonis focused on the value Elfa will bring to his company. Historically Elfa has primarily been distributed in the U.S. via The Container Store, which purchased the company in 1999.
“We see Elfa as one of the most important growth engines to be included within our Home Services platform,” said Lemonis in the letter. “we believe we will have the opportunity to grow this brand well beyond its historical constraints and fully realize its global potential.”
Anders Rothstein, who has led the Elfa business for approximately 10 years, will be named global CEO of Elfa International AB and will oversee all worldwide operations. Bed Bath & Beyond expects Rothstein to expand distribution, accelerate product innovation and position Elfa as a standalone global brand as it extends the brand’s reach across channels including direct-to-consumer, self-serve retail formats, and broader distribution partnerships.
In addition to its core modular closet systems, Bed Bath & Beyond also expects Elfa is expected to expand further into adjacent categories, including flat-packed and broader home storage solutions, new product innovations, and the continued rollout of its Studio Elfa design and planning services concept.
Bed Bath & Beyond expects Closet Works to complement Elfa by providing additional design, customization, and installation capabilities.
Meanwhile, Lemonis said The Container Store will continue to serve as an “important retail partner and distribution channel, while also providing a national footprint of premium locations that will support the expansion of Elfa’s product offering and services.”
Most of The Container Store roughly 100 U.S. retail locations are expected to remain open but will be rebranded as “The Container Store/Bed Bath & Beyond.” Lemonis said in the letter Bed Bath & Beyond has been considering this acquisition for 18 months.
C-suite moves
Bed Bath & Beyond is shuffling its C-suite as a result of its acquisition activity. Former Kirkland’s CEO Amy Sullivan will serve as president, responsible for the performance and integration of the entire enterprise across all three pillars and also oversee the Omni Channel Retail Pillar, including the performance and integration of all retail brands.
Bed Bath & Beyond Lisa Foley will transition from chief marketing officer to COO, with responsibility for operational execution across the enterprise. In addition, Container Store Brian LaRose will now serve as CFO, replacing current Bed Bath & Beyond CFO Adrianne Lee who is departing at the end of the month to take the CFO role at Sally Beauty.
Sullivan, Foley and LaRose will form the senior leadership team with Lemonis.
Corporate growth
Bed Bath & Beyond is in significant expansion mode. The company recently closed on an agreement to buy The Brand House Collective (formerly Kirkland’s Home). At that time, Lemonis said that upon the closing of the Kirkland’s transaction, the company’s combined base business — encompassing Bed Bath & Beyond, Overstock, BuyBuy Baby and Kirkland’s — will generate approximately $1.5 billion revenue on an annualized basis.
In January, Lemonis outlined a three-part strategy to transform Bed Bath & Beyond Inc. into an “Everything Home Company.” In a Feb. 23, 2026 letter to shareholders, he said Bed Bath & Beyond has an “additional omni-channel transaction agreed to in principle that we expect will add an additional $500 million of incremental annualized revenue.”
Bed Bath & Beyond’s net revenue fell 9.8% to $273 million for its most recently reported fiscal quarter ended Dec. 3, 2025. Adjusted revenue declined 6.4% year over year.
Net loss was $21 million, a $60 million improvement year over year. The adjusted EBITDA loss was $4 million, a $23 million improvement year over year. The company said it expects revenue trends to continue to improve in 2026, targeting low to mid-single digit top line growth for the full year while maintaining disciplined margin and expense management.
Meanwhile, The Container Store filed for bankruptcy in December 2024, saying it had negotiated and solicited support for a prepackaged plan of reorganization. It emerged at the end of January 2025 as a private company, noting it successfully refinanced its short-term debt and significantly reducing previous long-term debt.
[READ MORE: Container Store exits bankruptcy]
Bed Bath & Beyond expects to provide additional updates on Elfa’s expansion strategy and broader platform development as integration progresses following the consummation of the merger.
