Kirkland's, Inc. and Beyond, Inc. Strengthen Strategic Partnership with Clear Vision for Future; Closes $5.2 Million Expansion of Credit Agreement
Kirkland's (NASDAQ: KIRK) has closed a $5.2 million expansion of its existing credit agreement with Beyond, Inc. The expanded facility strengthens Kirkland's financial position and supports its store conversion strategy. The company plans to accelerate the rollout of Bed Bath & Beyond Home stores, Overstock stores, buybuy BABY, and Bed Bath & Beyond True Blue stores.
Key agreement modifications include: expanding licensed brands scope, increasing collaboration fee to 0.50% of brick-and-mortar retail revenues, allowing Beyond to convert outstanding debt into Kirkland's common stock, and permitting Beyond to acquire up to 65% of Kirkland's outstanding capital stock. Beyond also gains the right to add a third director nominee if owning over 50% of Kirkland's stock.
Kirkland's (NASDAQ: KIRK) ha completato un incremento di 5,2 milioni di dollari del suo attuale accordo di credito con Beyond, Inc. Questa espansione rafforza la posizione finanziaria di Kirkland e supporta la sua strategia di conversione dei negozi. L'azienda prevede di accelerare l'apertura di negozi Bed Bath & Beyond Home, Overstock, buybuy BABY e Bed Bath & Beyond True Blue.
Le principali modifiche all'accordo includono: l'ampliamento dell'ambito dei marchi autorizzati, l'aumento della commissione di collaborazione allo 0,50% dei ricavi retail fisici, la possibilità per Beyond di convertire il debito in sospeso in azioni ordinarie di Kirkland e l'autorizzazione per Beyond ad acquisire fino al 65% del capitale sociale di Kirkland. Inoltre, Beyond ottiene il diritto di nominare un terzo direttore se possiede oltre il 50% delle azioni di Kirkland.
Kirkland's (NASDAQ: KIRK) ha cerrado una ampliación de 5,2 millones de dólares de su acuerdo de crédito existente con Beyond, Inc. Esta ampliación fortalece la posición financiera de Kirkland y respalda su estrategia de conversión de tiendas. La compañía planea acelerar la apertura de tiendas Bed Bath & Beyond Home, Overstock, buybuy BABY y Bed Bath & Beyond True Blue.
Las modificaciones clave del acuerdo incluyen: ampliar el alcance de las marcas licenciadas, aumentar la comisión de colaboración al 0,50% de los ingresos minoristas físicos, permitir que Beyond convierta la deuda pendiente en acciones ordinarias de Kirkland y permitir que Beyond adquiera hasta el 65% del capital social en circulación de Kirkland. Además, Beyond obtiene el derecho de agregar un tercer candidato a director si posee más del 50% de las acciones de Kirkland.
Kirkland's (NASDAQ: KIRK)가 Beyond, Inc.와의 기존 신용 계약을 520만 달러 규모로 확장 완료했습니다. 이번 확장으로 Kirkland's의 재무 상태가 강화되고 매장 전환 전략을 지원합니다. 회사는 Bed Bath & Beyond Home 매장, Overstock 매장, buybuy BABY, Bed Bath & Beyond True Blue 매장 개설을 가속화할 계획입니다.
주요 계약 변경 사항은 다음과 같습니다: 라이선스 브랜드 범위 확장, 오프라인 소매 매출의 0.50%로 협력 수수료 인상, Beyond가 미상환 부채를 Kirkland's 보통주로 전환할 수 있는 권한 부여, Beyond가 Kirkland's의 발행 주식 중 최대 65%까지 인수할 수 있도록 허용. 또한 Beyond는 Kirkland's 주식의 50% 이상을 보유할 경우 세 번째 이사 후보를 추가할 권리를 갖습니다.
Kirkland's (NASDAQ: KIRK) a finalisé une extension de 5,2 millions de dollars de son accord de crédit existant avec Beyond, Inc. Cette extension renforce la position financière de Kirkland et soutient sa stratégie de conversion des magasins. L'entreprise prévoit d'accélérer le déploiement des magasins Bed Bath & Beyond Home, Overstock, buybuy BABY et Bed Bath & Beyond True Blue.
Les principales modifications de l'accord incluent : l'élargissement du périmètre des marques sous licence, l'augmentation des frais de collaboration à 0,50 % des revenus de la vente au détail en magasin, la possibilité pour Beyond de convertir la dette en cours en actions ordinaires de Kirkland, ainsi que la permission pour Beyond d'acquérir jusqu'à 65 % du capital social en circulation de Kirkland. Beyond obtient également le droit d'ajouter un troisième candidat au conseil d'administration s'il détient plus de 50 % des actions de Kirkland.
Kirkland's (NASDAQ: KIRK) hat eine Erweiterung seiner bestehenden Kreditvereinbarung um 5,2 Millionen US-Dollar mit Beyond, Inc. abgeschlossen. Die erweiterte Finanzierung stärkt Kirklands finanzielle Position und unterstützt die Strategie zur Umwandlung von Filialen. Das Unternehmen plant, die Einführung von Bed Bath & Beyond Home Stores, Overstock Stores, buybuy BABY und Bed Bath & Beyond True Blue Stores zu beschleunigen.
Wesentliche Änderungen der Vereinbarung umfassen: Erweiterung des Lizenzmarken-Spektrums, Erhöhung der Kooperationsgebühr auf 0,50 % der stationären Einzelhandelsumsätze, Ermöglichung für Beyond, ausstehende Schulden in Kirkland-Stammaktien umzuwandeln, sowie die Erlaubnis für Beyond, bis zu 65 % der ausstehenden Aktien von Kirkland zu erwerben. Beyond erhält außerdem das Recht, einen dritten Direktorkandidaten zu benennen, wenn es über 50 % der Kirkland-Aktien besitzt.
- Secured $5.2 million in additional financing for working capital and store conversion strategy
- Expanded brand portfolio with exclusive licenses for Bed Bath & Beyond Home and buybuy BABY stores
- Enhanced collaboration with Beyond to maximize synergies and reduce costs
- Potential for expanded distribution channels for Kirkland's Home brand
- Increased collaboration fee from 0.25% to 0.50% of brick-and-mortar retail revenues
- Potential significant dilution through Beyond's debt conversion rights
- Loss of control risk as Beyond can acquire up to 65% of company stock
- Removal of standstill, voting and transfer restrictions for Beyond
Insights
Kirkland's secured $5.2M from Beyond while granting significant operational control and future equity conversion rights in exchange for financial flexibility.
Kirkland's has secured a
The funding provides Kirkland's with needed working capital flexibility, but comes with notable strings attached. Beyond now has rights to convert outstanding debt to equity at a later-determined price, potentially securing majority ownership. If Beyond reaches
The modified collaboration terms shift from
Most tellingly, the companies have entered into a purchase agreement for Beyond to potentially acquire Kirkland's intellectual property, subject to senior lender approvals. Combined with the expanded store licensing rights and possible debt-to-equity conversion, this transaction effectively positions Beyond to gradually assume operational control of Kirkland's while potentially acquiring its brand assets.
Amy Sullivan, President and CEO of Kirkland's, "We're grateful for Beyond's ongoing partnership as we continue to reshape our business. This additional capital, along with supporting our operational needs, enables us to accelerate store conversion plans as we prioritize the rollout of Bed Bath & Beyond Home stores as well as Overstock stores, and continue plans for opening buybuy BABY and Bed Bath & Beyond True Blue stores. We see a tremendous opportunity to leverage the power of these brand names which we believe will drive more consistent traffic, improve inventory turns and ultimately raise the productivity of our store base. In addition, Bed Bath & Beyond Home not only allows us to maximize our current Kirkland's Home branded décor and furnishings, but it gives us permission to expand into legacy Bed Bath & Beyond brand categories such as textiles and tabletop to offer décor for every budget and every corner of your home. We look forward to the opportunities ahead that we believe will better position the business for long-term success and deliver value to all stakeholders."
In addition to the expanded credit facility, the companies have entered into a purchase agreement providing for the future sale of the Company's intellectual property to Beyond, subject to senior lender approvals.
Ms. Sullivan concluded, "We, alongside our partners at Beyond, believe in the value of all our brands and intend to leverage our expanded collaboration to not only build a brick & mortar presence for Beyond's current portfolio but also further monetize the Kirkland's Home brand through expanded distribution channels."
In connection with the credit facility expansion noted above, the Company and Beyond have agreed to certain amendments and modifications to existing transaction and collaboration agreements previously entered into between the companies, including:
- Expanding the scope of licensed brands to include an exclusive license to develop and operate Bed Bath & Beyond Home and buybuy BABY stores within the neighborhood format retail footprint.
- Enhanced collaborative efforts to maximize synergies, reduce costs and improve efficiencies to drive improved operating results.
- Modified collaboration fee from
0.25% of all revenues to0.50% of brick-and-mortar retail revenues only to capture expanded branding opportunity while eliminating the3.0% licensed brand royalty. - Amendments to the Company's existing credit agreement with Beyond to allow Beyond the right to convert outstanding debt owed to Beyond thereunder into shares of Kirkland's common stock at a price determined at the time of such conversion election, but subject to Nasdaq shareholder approval rules, if applicable.
- Amendments to Beyond stockholder agreements to provide Beyond the right to add a third director nominee to the Company's Board of Directors in the event that Beyond owns more than
50% of the outstanding capital stock of the Company, and to remove standstill, voting and transfer restrictions.
In connection with the financing, Kirkland's has also received a waiver from both its lenders, Bank of America, N.A. and Beyond as expected per the recent Form 8-K filing on May 1, 2025. The Company's senior credit agreement with Bank of America, N.A. was also amended to permit Beyond to acquire up to
The forgoing description of these documents and transactions is qualified in its entirety to terms and conditions of such agreements, which will be further described and filed with the SEC on a Form 8-K.
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor and furnishings in
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "aim," "believe," "can," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "forecast," "plan," "possible," "intend," "target," or the negative of these words or other similar expressions that concern the Company's expectations, strategy, priorities, plans, or intentions. Such forward-looking statements involve known and unknown risks and uncertainties, many of which are outside of the Company's control, which may cause the Company's actual results to differ materially from forecasted results. Forward-looking statements in this communication include, but are not limited to, the effect of the transactions entered into with Beyond (the "Transactions") on the Company's business relationships, operating results and business generally; unexpected costs, charges or expenses resulting from the Transactions; potential litigation relating to the Transactions that could be instituted against Beyond, the Company or their affiliates' respective directors, managers or officers, including the effects of any outcomes related thereto; continued availability of capital and financing; the ability to obtain the various synergies envisioned between the Company and Beyond; the ability of the Company to successfully open new stores or re-brand existing Kirkland's Home stores under a Bed Bath & Beyond or other licensed brand; the ability of the Company to successfully market its products to the new customers and expand through new e-commerce platforms and to implement its plans, forecasts and other expectations with respect to its business after the completion of the Transactions and realize additional opportunities for growth and innovation; risks associated with the Company's liquidity including cash flows from operations and the amount of borrowings under the secured revolving credit facility; the fact that, notwithstanding our receipt of waivers under our credit agreements, our independent registered public accounting firm's report for the year ended February 1, 2025 is qualified as to our ability to continue as a going concern; the Company's ability to successfully implement cost savings and other strategic initiatives intended to improve operating results and liquidity positions; the Company's actual and anticipated progress towards its short-term and long-term objectives including its multi-brand and omni-channel strategy; the risk that natural disasters, pandemic outbreaks, global political events, war and terrorism could impact the Company's revenues, inventory and supply chain; the continuing consumer impact of inflation and countermeasures, including high interest rates, the effectiveness of the Company's marketing campaigns; risks related to changes in
Contact: | Investor Relations Kirkland's, Inc. Mike Madden 1-615-872-4800 | Investor Relations ICR Caitlin Churchill 1-203-682-8200 | Media Kirkland's, Inc. |
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SOURCE Kirkland's, Inc.
FAQ
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