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.

As per the asset purchase agreement, pending senior lender approvals, Beyond will also buy some related assets.

The plan is to licence these trademarks back to Kirkland’s for use in its existing retail stores and e-commerce platforms.

The company 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 $5.2m, 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.

Beyond executive chair and principal executive officer Marcus Lemonis said: “Our expanded investment in Kirkland’s represents another step in our vision to create a family of trusted, iconic brands that serve customers where they are, both online and in local communities. We are excited to bring a much-desired omni-experience to our valuable customers.

“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.”

The expanded credit facility includes an ‘Amended and Restated Term Loan Credit Agreement’ that provides Kirkland’s with an additional $5m in financing on top of accrued interest from the previous facility and outstanding collaboration fees from an earlier agreement between the two entities.

An amended and restated collaboration agreement has also been established, under which, the collaboration fee paid to Beyond has doubled from 0.25% to 0.50% on all retail revenue generated by Kirkland’s brick-and-mortar stores.

The partnership has further evolved through amendments to their existing licence agreement. This modification grants Kirkland’s a licence to open and operate Bed Bath & Beyond Home and buybuy BABY stores within a neighbourhood format retail footprint.

Lastly, the transaction introduces changes that enhance capital structure flexibility and governance provisions. These include lifting transfer and voting restrictions on Kirkland’s stock previously issued under a subscription agreement, removing a standstill period from the investor rights agreement, and allowing Beyond to nominate an additional member to the board of directors of Kirkland’s.