Beyond is set to acquire home décor retailer Kirkland’s intellectual property for $5 million, according to a company press release.
As part of the deal, Beyond plans to license the trademarks back to Kirkland’s for the retail and e-commerce use.
Additionally, Kirkland’s is set to receive a $5.2 million credit expansion from Beyond, which is aimed at driving expansion and boosting the store conversion strategy.
Beyond has also revised the collaboration agreement and increased Kirkland’s collaboration fee from 0.25% to 0.5% and removed Kirkland’s 3% royalty obligations for its brands Bed Bath & Beyond and Overstock.
The deal includes an amendment to the license agreement that allows Kirkland’s to start up Bed Bath & Beyond Home and BuyBuy Baby stores in a smaller neighborhood format, which was announced earlier this year.
Marcus Lemonis, Beyond’s Executive Chairman and Principal Executive Officer, said: “We have broadened the brick-and-mortar store conversion strategy to include the Bed Bath & Beyond Home concept and BuyBuy Baby.
“We also see great value in enhancing our intellectual property portfolio to include Kirkland’s Home within our family of brands alongside Bed Bath & Beyond, Overstock, and BuyBuy Baby, among others. We expect this to enhance Beyond’s brand equity and unlock new revenue streams across retail formats.”
Recently, Kirkland’s reported a mixed performance ahead of its retail expansion to re-introduce Bed Bath & Beyond products to brick-and-mortar retail.
Amy Sullivan, CEO of Kirkland’s, commented in an earnings call : “We have identified the first of many potential store conversions under the Bed Bath & Beyond Home and Overstock banners that we believe will not only drive stronger brand awareness and customer acquisition but also support our ongoing transformation efforts.”
Moving forward, the specialty retailer is leveraging strategic investments as part of its turnaround strategy.
Click here to sign up to Retail Gazette‘s free daily email newsletter
