Kirkland’s secures $12M loan from Gordon Bros. to support strategic turnaround
Kirkland’s has secured additional credit line as it continues its strategic repositioning.
The company has secured a $12 million first-in last-out delayed draw term loan from Gordon Brothers. When drawn, the U.S. home décor and furnishings retailer (operating under the Kirkland’s Home brand) will use the loan to provide additional liquidity for ongoing working capital needs.
Kirkland’s has been working to focus on value home décor, with an emphasis on seasonal goods for entertaining, decorating and gifting as it downplays high-ticket furniture items.
“Gordon Brothers’ capital, capabilities and breadth of services will further bolster our transformation efforts,” said Mike Madden, CFO of Kirkland’s Home. “Not only does the additional capital provide us with sufficient room to continue executing our strategic repositioning, but the financing was tailored to maximize value and give us flexibility going forward.”
In January, Kirkland’s promoted Amy Sullivan to CEO, effective Feb. 5. She is the company’s first female chief executive.
The retailer said its comparable sales for the first two months of the fiscal fourth quarter (through Dec. 30, 2023) increased 3.1% compared to year-ago period. This includes an increase of 1.5% for November 2023 and an increase of 4.8% for December 2023. The positive comparable sales increase was largely driven by strong in-store performance from increased traffic and conversion.
“Overall, we are pleased with our performance this holiday season as the changes in our marketing efforts and merchandise assortments resonated with our customer base,” the company stated. While there remains much work to be done, we believe the strategic pivots we've implemented are gaining traction with our loyal customer base and also generating interest from new customers.”
Gordon Brothers provides both short- and long-term capital to clients undergoing transformation. The firm lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, both together and individually, to provide clients liquidity solutions beyond its disposition and appraisal services.
“We’re proud to invest in an industry leader like Kirkland’s and provide additional liquidity to achieve growth initiatives after a period of challenging financial performance and macroeconomic pressures,” said Kyle C. Shonak, senior managing director, transaction team & head of North America lending at Gordon Brothers. “We were able to combine our customized lending with additional enhancements for a more effective long-term solution.”
Kirkland’s operates 338 stores in 35 states.