Kirkland's Home Stores to Close in Five Cities Dec. 27
The retailer continues its store-base consolidation to improve profitability following a significant decline in net sales.
Updated on Oct. 31, 2026 in Retail
Live Poll
Is the number of retail options in your community getting better or worse?
Kirkland's Home is set to close five retail locations in Tennessee, Mississippi, Indiana, and Georgia on December 27, 2026. These shutdowns continue a broader portfolio optimization strategy by parent company Brand House Collective as it looks to address declining sales across its national footprint.
Why it matters
The closures follow a period of financial pressure for Brand House Collective, marked by a 9.5% year-over-year decline in net sales and a 34.6% drop in e-commerce performance during the third quarter of fiscal 2025. By shedding underperforming assets, the company aims to improve overall profitability and restructure its retail operations.
Brand House Collective reported a 9.5% year-over-year decline in net sales and a 7.4% fall in consolidated comparable sales in the third quarter of fiscal 2025. The company operates more than 300 stores across 35 states, with current efforts focused on shuttering underperforming locations.
The players
Kirkland's Home
A home decor retailer that recently sold its intellectual property and is currently rightsizing its physical store footprint.
Brand House Collective
The parent company of Kirkland's Home that is actively divesting retail assets and converting store brands to improve financial performance.
Bed Bath & Beyond, Inc.
A retail organization that acquired Kirkland's Home intellectual property and maintains a credit agreement with Brand House Collective.
The details
Brand House Collective is systematically closing stores that fail to meet internal performance benchmarks to optimize its real estate portfolio. This move follows the $10 million sale of the Kirkland's Home intellectual property to Bed Bath & Beyond, Inc. in September 2025 and a concurrent $20 million expansion of its credit agreement to shore up liquidity. The company is concurrently working to convert remaining store footprints into different retail brand formats to stabilize its operations.
Timeline
January 2026: 25 store locations were scheduled for closure.
April 2026: A store location in Rochester, Minnesota, closed.
September 2026: A store location in Trussville, Alabama, closed.
December 27, 2026: Identified retail locations are scheduled to close permanently.
Market Landscape
The current store closures follow the 2025 Brand House Collective credit agreement with Bed Bath & Beyond, Inc., which provided the necessary liquidity to restructure the retail portfolio. This liquidation strategy marks a shift away from physical growth toward a leaner, potentially rebranded operating model.
Operators should monitor the effectiveness of Brand House Collective's rebranding and closure strategy as a signal for broader trends in home goods retail consolidation. Companies facing similar e-commerce declines should review their own real estate portfolios for underperforming assets that may be dragging on capital.
The takeaway
The Kirkland's Home store closures highlight a critical need for retailers to aggressively prune physical locations when e-commerce and comparable sales metrics consistently decline. Management should regularly audit store-level profitability against occupancy costs to determine if asset liquidation or rebranding is necessary to preserve the parent company's liquidity.
Further reading
For more on industry shifts, visit the Retail sector analysis.
Source note: This article includes information reported by Lexington Herald Leader.
Live Poll
Is the number of retail options in your community getting better or worse?
