Kirkland's Inc

NASDAQ:KIRKUnited States

Oct 21, 2024

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• Beyond to Invest $25 Million in Kirkland's Under Strategic Partnership, from 11:23AM ET on Monday Oct 21, 2024 by MT Newswires

  11:23AM ET on Monday Oct 21, 2024 by MT Newswires
  Companies Mentioned: KIRK, BYON
  11:23 AM EDT, 10/21/2024 (MT Newswires) -- Kirkland's (KIRK) and Beyond (BYON) said Monday they have formed a partnership under which Beyond will invest $25 million in Kirkland's in a combined debt and equity transaction. Kirkland's entered into a $...

• DJ Bed Bath & Beyond Stores to Return in $25M Partnership With Kirkland's -- Update, from 9:27AM ET on Monday Oct 21, 2024 by Dow Jones

  9:27AM ET on Monday Oct 21, 2024 by Dow Jones
  Companies Mentioned: KIRK, BYON
  By Sabela Ojea Beyond and home-decor retailer Kirkland's have entered a partnership that will bring back physical Bed Bath & Beyond stores more than a year after the retailer filed for bankruptcy. Midvale, Utah-based Beyond, which owns the Bed Bath & Beyond, Overstock and Zulily brands will invest $25 million in Kirkland's in a combined debt and equity transaction, in exchange of a licensee agreement for new, smaller format Bed Bath & Beyond locations across the U.S., the companies said Monday. Kirkland's will become the exclusive brick-and-mortar operator of Beyond while the companies work to cut costs and improve inventory management. The agreement comes less than a week after Beyond said it was investing $40 million in The Container Store, providing the struggling retail chain a financial lifeline while returning some Bed Bath & Beyond products back to retail locations. Bed Bath & Beyond Inc. filed for bankruptcy protection in April of 2023 to wind down its business after years of losses and failed turnaround plans left the once-powerful retailer short of cash. Shares of Kirkland's rose 15% to $2.29 in pre-open trading Monday. Beyond shares were up 3.1% at $10.85. As part of the deal, Beyond will provide Kirkland's with a $17 million term loan credit that would allow it to repay an existing loan from retail investment firm Gordon Brothers. Half of the loan will be convertible into Kirkland's shares. Following the closing of a common-stock purchase, Beyond will have the right to nominate two independent directors to Kirkland's board, so long as it retains a 20% stake in Kirkland's. Beyond also will be able to designate a board appointment if it owns at least 5% of Kirkland's common stock. Beyond and Kirkland's have also entered into a seven-year collaboration agreement under which Beyond will earn a fee equal to 0.25% of Kirkland's quarterly retail and e-commerce revenue, starting in Kirkland's first fiscal quarter of fiscal 2025. Beyond will get an incentive fee equal to 1.5% of Kirkland's incremental growth in e-commerce revenue, and earn a store-royalty fee equal to 3% of net store sales generated under the Bed Bath & Beyond banner, with the rate increasing to 5% after the collaboration agreement has terminated, if the locations are still operating. "An omnichannel approach to Bed Bath & Beyond is quintessential to its success," Beyond Executive Chairman Marcus Lemonis said. Investment firm Osmium Partners, which owns about 9% of Kirkland's outstanding shares, has agreed to support the transaction at the upcoming Kirkland's special meeting of shareholders. Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix (END) Dow Jones Newswires October 21, 2024 09:27 ET (13:27 GMT)

• DJ Bed Bath & Beyond Stores to Return in $25M Partnership With Kirkland's, from 8:20AM ET on Monday Oct 21, 2024 by Dow Jones

  8:20AM ET on Monday Oct 21, 2024 by Dow Jones
  Companies Mentioned: KIRK, BYON
  By Sabela Ojea Beyond and home-decor retailer Kirkland's have entered a partnership that will bring back physical Bed Bath & Beyond stores more than a year after the retailer filed for bankruptcy. Midvale, Utah-based Beyond, which owns the Bed Bath & Beyond, Overstock and Zulily brands will invest $25 million in Kirkland's in a combined debt and equity transaction, in exchange of a licensee agreement for new, smaller format Bed Bath & Beyond locations across the U.S., the companies said Monday. Kirkland's will become the exclusive brick-and-mortar operator of Beyond while the companies work to cut costs and improve inventory management. The agreement comes less than a week after Beyond said it was investing $40 million in The Container Store, providing the struggling retail chain a financial lifeline while returning some Bed Bath & Beyond products back to retail locations. As part of the deal, Beyond will provide Kirkland's with a $17 million term loan credit that would allow it to repay its existing loan with Gordon Brothers. Half of the loan will be convertible into Kirkland's shares. Following the closing of a common-stock purchase, Beyond will have the right to nominate two independent directors to Kirkland's board, so long as it retains a 20% stake in Kirkland's. Beyond also will be able to designate a board appointment if it owns at least 5% of Kirkland's common stock. Beyond and Kirkland's have also entered into a seven-year collaboration agreement under which Beyond will earn a fee equal to 0.25% of Kirkland's quarterly retail and e-commerce revenue, starting in Kirkland's first fiscal quarter of fiscal 2025. Beyond will receive an incentive fee equal to 1.5% of Kirkland's incremental growth in e-commerce revenue, and earn a store-royalty fee equal to 3% of net store sales generated under the Bed Bath & Beyond banner, with the rate increasing to 5% after the collaboration agreement has terminated, if the locations are still operating. "An omnichannel approach to Bed Bath & Beyond is quintessential to its success," Beyond Executive Chairman Marcus Lemonis said. Osmium Partners, who owns about 9% of Kirkland's shares outstanding, has agreed to support the transaction at the upcoming Kirkland's special meeting of shareholders. Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix (END) Dow Jones Newswires October 21, 2024 08:20 ET (12:20 GMT)

• Kirkland's Home and Beyond, Inc. to Revitalize Bed Bath & Beyond Brand with Neighborhood Store Strategy Through New Strategic Partnership, from 7:07AM ET on Monday Oct 21, 2024 by PR Newswire

  7:07AM ET on Monday Oct 21, 2024 by PR Newswire
  Companies Mentioned: KIRK, BYON

  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 via Combined Debt and Equity Transaction to Strengthen Kirkland's Capital Position and Fuel Growth Initiatives