The company, now known as Neighborhood Intelligence, relied on acquisitions to expand its business beyond retail. With two deals called off, where does that leave its turnaround?

At the start of the year, CEO Marcus Lemonis laid out a plan that focused on three pillars: omnichannel retail, home services and home ownership. A big part of that strategy relied on acquisitions as a way to build out its company and move into areas beyond traditional retail.

The company, formerly known as Bed Bath & Beyond, initiated a string of acquisitions that have included The Brand House Collective, The Container Store and more.

But more recently, weaknesses have emerged in Neighborhood Intelligence’s strategy. In September, the company called off its deal with F9 Brands, the owner of Cabinets To Go and Lumber Liquidators. And last month, it canceled its acquisition of real estate platform Fathom Holdings.

“It struck me as one that could only succeed if everything went right, and that doesn't tend to happen,” James Gellert, executive chair of financial analysis firm RapidRatings, said. “What we've seen here is, some of these component parts have not come together for a variety of reasons.”

Neighborhood Intelligence last month said it is now putting future acquisitions on hold as it focuses on organic growth at its core businesses.

“You can't execute a comprehensive and complex strategy when there are a lot of low common denominators that don't come together. The diversification that Neighborhood Intelligence was trying to achieve is not yet realized and may not be realized,” Gellert said.

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