Investing in Kirkland's, Inc.: A Buy After Bad Times?

Robert King submits: Brief Description

Kirkland’s, Inc. (“Kirkland’s” or the “company”) is a low-cost home decor retailer operating 296 stores in 29 states with most of its stores located in the Sun Belt. The company is pretty well known in the value investing circles and a quick look into its history will reveal why. In 1996, Kirkland’s was acquired by private equity firm Advent Partners and then taken public in 2002 for $15 a share. However, between 2004 and 2007, the company began an ill-fated expansion out of its core markets while simultaneously changing their merchandising strategy to compete with more upscale competitors. (We’ll refer to this as “The Bad Times.”)

Coincidentally, as the company began to turn around its strategy to focus on its core market, two large funds owning approximately 25% of the company were having problems that caused th

By admin posted about 1 year ago

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