NASHVILLE, Tenn. -- Kirkland's, Inc. (Nasdaq: KIRK) ("Kirkland's" or the "Company"), a specialty retailer of home décor and furnishings, announced that the Company's shareholders, in accordance with applicable Nasdaq Listing Rules at a Special Meeting of the Shareholders concluded on February 5, 2025 (the "Special Meeting"), have approved the issuances of shares of common stock pursuant to the Term Loan Credit Agreement and Subscription Agreement previously entered into with Beyond, Inc. (NYSE: BYON) ("Beyond") on October 21, 2024.
Following the Special Meeting in which the Company obtained the requisite shareholder approvals, with 97% of votes cast in favor of the proposal, Beyond completed both an $8 million equity purchase under the Subscription Agreement and the mandatory conversion of an $8.5 million convertible term loan under the Term Loan Credit Agreement. With the completion of this transaction, Beyond has now provided Kirkland's with a total of $25 million of capital and now owns approximately 40% of Kirkland's outstanding shares of common stock.
Amy Sullivan, CEO of Kirkland's, commented, "Today marks a pivotal moment for Kirkland's, as the completion of this transaction and ongoing value of our strategic partnership with Beyond begin to unlock new drivers of transformation following our efforts over the past year focused on revitalizing the Kirkland's brand. I am immensely proud of the team and the significant improvements we continue to make through our strategic initiatives of reengaging our core customer, refocusing our product assortment and strengthening our omni-channel capabilities. As we look ahead, together with the Beyond team we will continue to leverage Kirkland's core strengths including our Merchandising, Store Operations and Supply Chain expertise and infrastructure to build a cohesive omni-channel strategy for Beyond's portfolio of iconic brands. Plans are underway for our first Bed Bath & Beyond store opening later this year, and we look forward to continuing to explore opportunities to maximize the value of our partnership. We enter fiscal 2025 with additional capital, new opportunities for growth and an intense focus on aggressively addressing underperforming assets and delivering improved profitability."
"Our investment and the overwhelming shareholder support reinforces the value we see in Kirkland's and its management team. Through this strategic partnership we are committed to leveraging the strengths of each company to drive long-term sustainable growth as we work together to build the omni-channel strategy across our family of brands," said Marcus Lemonis, Executive Chairman of Beyond.