NASHVILLE, Tenn. — Kirkland’s Inc., a home décor and furnishings retailer, has entered into a strategic business relationship with Midvale, Utah-based Beyond Inc., becoming the exclusive brick-and-mortar operator and licensee for smaller format Bed, Bath & Beyond locations nationwide.
An initial five “neighborhood format” physical stores will be in the 7,000- to 15,000-square-foot range. There is also a non-exclusive license in the deal for shop-in-shops under the Bed, Bath & Beyond nameplate at yet-to-be-determined Kirkland’s locations.
Under terms of the deal, Beyond Inc., which owns Bed, Bath & Beyond, Overstock and Zulily, will provide $17 million in debt financing to Kirkland’s, which includes an $8.5 million promissory note and an $8.5 million convertible note. A portion of the latter will convert into Kirkland’s common stock at a price of $1.85 per share upon approval by Kirkland’s shareholders. The loan is being secured by Kirkland’s assets and is secondary to an existing loan Kirkland’s has with Bank of America…