Bed Bath & Beyond CEO issues letter to shareholders

Bed Bath & Beyond has issued the following letter from Marcus Lemonis, Executive Chairman and Chief Executive Officer of Bed Bath & Beyond: “I want to start by sharing how I think about the acquisition of The Container Store, Elfa, and Closet Works, and why I believe this transaction is a critical step for our company… This transaction will fill critical gaps in both our retail and home services strategy. As we build our company platform, any additional assets including talent must serve a clear purpose to our company’s long-term strategy… Alongside early signs of revenue growth and earnings improvement in the first quarter of 2026 vs. the first quarter of 2025, we have closed on the acquisition of Kirkland’s and signed definitive agreements to bring The Container Store, Elfa, and Closet Works into our Everything Home ecosystem… We have also signed definitive agreements to merge three premium businesses into our company, The Container Store, Elfa, and Closet Works, each aligned with our three pillar strategy: the Omni Channel Retail Pillar, the Products and Services Pillar, and the Home Services Pillar. Pursuant to these agreements, we have agreed to acquire Elfa, one of the world’s leading home organization systems based in Malmo, Sweden, and Closet Works, based in the greater Chicago area. These businesses will serve as foundational anchors of our Home Services Pillar. In addition, we have agreed to acquire The Container Store, founded in Dallas, Texas, which will join Bed Bath and Beyond, Overstock.com, buybuybaby.com, and Kirkland’s to round out our Omni Channel Retail Pillar… Amy Sullivan will serve as President, responsible for the performance and integration of the entire enterprise across all three pillars… Lisa Foley will transition from Chief Marketing Officer to Chief Operating Officer, with responsibility for operational execution across the enterprise. Brian LaRose will serve as Chief Financial Officer, overseeing financial strategy, capital allocation, and performance discipline… Anders Hahn will be named Chief Executive Officer of Elfa. Having served as President for the past ten years, Anders will lead the continued growth and expansion of Elfa. Adrianne Lee has decided to leave the Company at the end of April to pursue a new opportunity… We are focused on disciplined integration, clear execution, and delivering shareholder value. We believe we can deliver at least $40 million of annualized cost savings and productivity efficiencies within 12 to 18 months from fully integrating Kirkland’s Home, The Container Store, Elfa, and Closet Works. We anticipate closing the acquisition of The Container Store, Elfa, and Closet Works in July 2026… We are strengthening our Omni Channel Retail Pillar, establishing the foundation of our Home Services Pillar, and continuing to build our Products and Services Pillar in a way that connects how customers shop, improve, and manage their homes. “