Bed Bath & Beyond will soon have a second $150 million acquisition under its belt, now striking a deal to buy the company that owns retailers Lumber Liquidators and Cabinets To Go and their roughly 300 stores.
The back‑to‑back acquisitions signal a sharp strategic pivot for Bed Bath & Beyond, underscoring its effort to reinvent itself from a traditional home‑goods retailer into a home‑services company focused on higher‑ticket renovation and installation projects rather than low‑margin merchandise sales.
Bed Bath & Beyond, based in Murray, Utah, said on Wednesday it signed a letter of intent to acquire the equity interests and substantially all the assets of F9 Brands. That company, headquartered in Lawrenceburg, Tennessee, owns and operates Cabinets To Go, Lumber Liquidators, Gracious Home/Thos. Baker and Southwind Building Products.
The deal is expected to close after Bed Bath & Beyond's annual shareholder meeting in May, a move that will vastly expand its brick-and-mortar space with its pending purchase. Lumber Liquidators is a specialty retailer of waterproof and hardwood flooring with more than 200 stores nationwide. Cabinets To Go is the largest specialty retailer of kitchen cabinets in the country, with more than 100 stores. And Southwind Building Products supplies flooring and building materials to a network of 4,400 independent retailers and contractors across the country.
The announcement comes about a week after Bed Bath & Beyond said it was buying Texas-based Container Store in a deal valued at $150 million. The chain's more than 100 stores will be rebranded as The Container Store/Bed Bath & Beyond and will carry the kind of stock like bedding and kitchenware that was the hallmark of the original Bed Bath & Beyond. The acquirer will also gain ownership of Closet Works, a designer and installer of custom storage systems for homes, and Elfa, specializing in shelving systems, as part of that deal.
Bed Bath & Beyond said the F9 deal, combining its offerings with Closet Works and Elfa, is another step in it creating a national, fully integrated home-services platform under Beyond Home Services. That platform will be able to serve customers "across the full lifecycle of homeownership," from design and product selection to installation and financing, according to Bed Bath & Beyond.
"Beyond Home Services will combine category leading brands across cabinets, flooring, closets, and distribution with installation services, financing solutions, and a growing retail footprint, positioning Bed Bath & Beyond to participate in larger, higher frequency home projects with increased customer lifetime value," Bed Bath & Beyond said in its statement.
Competitive, strategic challenges
But the company is venturing into a highly competitive landscape. The sector already has several incumbent and giant leaders: The Home Depot and Lowe's.
There are other risks. Retail analysts last week scrutinized the Container Store deal and questioned the wisdom of Bed Bath & Beyond's history of buying troubled companies, and the same concern surfaced over the F9 deal.
Container Store had filed for Chapter 11 bankruptcy protection in December 2024 and emerged in March 2025 as a private company. And Richmond, Virginia-based Lumber Liquidators, then operating under the name LL Flooring, filed for bankruptcy in 2024 and was ready to close much of its store fleet. But later that year, F9 stepped in and acquired about 200 of the chain's stores, kept them open and returned the chain to its original name, Lumber Liquidators.
David Swartz, a senior equity analyst at Morningstar, expressed skepticism about Bed Bath & Beyond's strategy of picking up Container Store and Lumber Liquidators.
"There are reasons why these businesses failed in the first place," Swartz said in an email to CoStar News. "They lack the scale, vendor relationships and financial resources of competitors. In LL’s case, it must compete with companies like Home Depot, Menards, Lowe’s and Floor & Décor. All these companies in the 'new' Beyond are ones that have struggled to compete in the past. There’s no reason to think that putting them together is going to change that."
Bed Bath & Beyond didn't respond to an email from CoStar News seeking comment, and F9 didn't respond to a phone call.
In addition to the stand-alone Cabinets To Go and Lumber Liquidators stores, Bed Bath & Beyond customers will have access to F9 Brands’ products and services through the Custom Spaces section of The Container Store/Bed Bath and Beyond stores.
Bed Bath & Beyond said it "will leverage more than 2.2 million square feet of retail space to create full-service home project centers where customers can design, purchase, finance and install complete home solutions."
Aiming for bigger sales
The company said it is looking to get into higher ticket, higher margin, project-based categories, including kitchens, flooring and custom storage. Bed Bath & Beyond aims to increase the average transaction size, the average transaction margin and the customer lifetime value.
Lumber Liquidators, Cabinets to Go, Elfa and Closet Works are each brands that own "a distinct category — modular storage systems, custom closets, flooring, cabinets and countertops, carpet and hard surface flooring distribution," according to Marcus Lemonis, executive chairman and CEO of Bed Bath & Beyond.
"And together with our installation services and field sales organization, we can take the homeowner through the full lifecycle of a renovation, all under one platform," he said in a statement.
F9 generated about $522 million in net delivered sales in fiscal 2025 and currently has roughly $130 million of inventory on hand. The company's purchase price includes $37 million in cash and around 16 million shares of Bed Bath & Beyond stock at $7 per share, representing a transaction value of $107 million at the current market price.
Jason Delves is set to serve as CEO of Beyond Home Services. He has served as president and CEO of F9 since 2019. Under his leadership, the business has grown organically and through acquisitions from $145 million to $522 million in sales.
Last week Lumber Liquidators said it would be relocating its headquarters from Richmond to a building under construction in Lawrenceburg, where F9 is based.