Beyond to Acquire Kirkland’s IP for $5M and License it Back
Beyond, the parent company of Bed Bath & Beyond and buybuy BABY, has struck a deal to acquire rights to the brand name of home decor and furnishings retailer Kirkland's, reports Yahoo Finance. As per the asset purchase agreement, pending senior lender approvals, Beyond will also buy some related assets. The plan is to license these trademarks back to Kirkland’s for use in its existing retail stores and e-commerce platforms.
Beyond has also bolstered its investment in Kirkland's Home through an enhanced credit facility aimed at fortifying the latter's financial base. This move is designed to offer Kirkland's greater working capital agility and back a revised strategy for store transformation. The strategic investment amounts to $5.2 million, aimed at bolstering Kirkland's financial standing and providing it with increased working capital flexibility. This move is also set to back Kirkland's revised store conversion strategy.
Total Retail's Take: Beyond and Kirkland's are building on a partnership that started in October of last year, when Kirkland’s entered into a $17 million term loan credit agreement with Beyond. This new collaboration also grants Kirkland’s a license to open and operate Bed Bath & Beyond Home and buybuy BABY stores within a neighborhood format retail footprint. Beyond can now acquire up to 65 percent of Kirkland’s outstanding capital stock and nominate an additional member to the retailer's board of directors, among several other changes.
According to a press release from Kirkland's, the two retail companies plan to utilize the updated partnership to accelerate store conversion plans during the rollout of Bed Bath & Beyond Home stores as well as Overstock stores. Bed Bath & Beyond Home will enable Kirkland's to expand into legacy Bed Bath & Beyond brand categories such as textiles and tabletop.
"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," said Kirkland's President and CEO Amy Sullivan. "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-and-mortar presence for Beyond's current portfolio but also further monetize the Kirkland's Home brand through expanded distribution channels."
By adding several layers to an already complex retail partnership, it appears both home furnishing retailers are committed to strategically growing together.
- Companies:
- Bed, Bath & Beyond
- People:
- Amy Sullivan
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
