The Brand House Collective (KIRK) Partnership summary

Opening remarks and agenda

• Conference call convened to discuss the newly announced strategic partnership, with Q&A to follow the formal presentation.

• Management clarified the focus would be on the partnership announcement, not current financial performance.

• Kirkland's and Beyond announced a strategic partnership to revitalize the Bed Bath & Beyond brand using a neighborhood store strategy, with a conference call scheduled to discuss details.

Objectives of the partnership

• Partnership aims to drive long-term, sustainable, and profitable growth and value for stakeholders through collaboration.

• Collaboration will enhance financial performance and earnings potential by leveraging each company's strengths and expanding market reach.

• The arrangement is expected to be P&L neutral compared to previous debt structure, while enabling significant growth opportunities.

Partner introductions and roles

• Kirkland's CEO and CFO led the call, with Beyond represented by Marcus Lemonis and team.

• Kirkland's will act as exclusive licensee for the new neighborhood store format, leading product assortment and operations.

• Kirkland's will operate as Beyond's exclusive brick-and-mortar licensee for new, smaller Bed Bath & Beyond stores nationwide.

• Beyond will invest $25 million in Kirkland's via debt and equity, gaining board nomination rights based on ownership thresholds.