The previously closed and bankrupt retailer Bed, Bath and Beyond is making a comeback through a new agreement with Kirkland Inc.

Bed Bath & Beyond stores will be re-opening in a smaller format. Beyond Inc., which owns brands including Bed Bath & Beyond, Overstock, and Kirklands, said it’s investing $40 million in the Container Store Group.

Kirkland’s will serve as the brick-and-mortar operator and licensee for Beyond’s stable of brands, which include Bed Bath & Beyond, Overstock and Zulily.

Kirkland’s Inc. (Nasdaq: KIRK) is partnering with Beyond Inc., the parent company of Bed, Bath & Beyond, to bring back “neighborhood” Bed, Bath & Beyond locations, according to a Kirkland’s news release.

Kirkland’s (NASDAQ:KIRK) and Beyond (NYSE:BYON), the parent company of Overstock, Bed Bath & Beyond, and Zulily, are partnering to increase the exposure of Bed Bath & Beyond with merchandise now offered in Kirkland’s (KIRK) brick and mortar locations.

Beyond, Inc has entered a partnership with Kirkland’s to bring the currently online-only Bed Bath & Beyond back to brick-and-mortar.

Shares of Kirkland's Inc. ended Monday’s trading session up about 6 percent, following the Nashville-based home decor retail company’s announcement of a partnership with the parent company of the 2023-liquidated Bed Bath & Beyond.

The companies will open neighborhood, small-format stores, and Beyond will invest $25 million in Kirkland's in a combined debt and equity transaction.

Kirkland's, a speciality retailer, has formed a strategic partnership with Beyond, the owner of the Bed Bath & Beyond brand, to revitalise the brand to drive sustainable, profitable growth by harnessing the core strengths of both companies.

Strategic Partnership Between Kirkland's Home and Beyond, Inc. to Drive Sustainable Profitable Growth and Leverage Core Strengths of Both Companies . Beyond to Invest $25 Million