Home Decor Store Kirkland’s to Close 19 Stores Across 17 States (Is Yours One?)

If it seems like retail stores are taking a nose-dive, it's likely because they are. Many major retailers have announced store closures recently, and one popular chain is the newest to share plans for closings.

Kirkland's is a discount home decor and furnishings retailer known for offering stylish merchandise at an affordable price. But as families scramble for ways to save money on essentials, the company has announced that its footprint will be decreasing. Here's what we know about the locations slated for shutdown.

The decision to close stores comes as a result of profitability concerns. According to CEO Amy Sullivan, the company will be eliminating or converting underperforming stores after a review of the entire store footprint.

This is one part of the company's three-point strategy that also includes optimizing e-commerce and maximizing its private label distribution. That essentially means closing less profitable stores, ramping up online, and partnering with other brands.

Kirkland's recent Partnership with Bed Bath & Beyond is a reflection of the chain's efforts to maximize its home brand value and distribution and increase its online sales performance.

Bed Bath & Beyond filed for bankruptcy in 2023, resulting in the closure of all remaining stores, including BuyBuy Baby locations. The bankruptcy allowed Overstock to acquire the company and rebrand it as Beyond Inc. 

Overstock and Kirkland's reached a partnership deal in the fourth quarter of 2024 that could allow some of these brick-and-mortar stores to be rebranded. This includes five small-format Bed Bath & Beyond stores opening, and Bed Bath & Beyond shop-in-shops could also appear in certain Kirkland's locations.

According to Sullivan, 6% of underperforming stores will be closed. The chain currently includes approximately 317 locations, so that indicates roughly 19 stores slated for shutdown. There is no indication of which stores will specifically be affected, but they operate in 35 states, so your local Kirkland's could be on the list.

While an exact timeline has not yet been released, it's likely that the closures will coincide with the ending dates on location leases.

Kirkland said their plan is "strategically converting stores to a more margin-accretive brand, augmenting the assortment strategy to drive improved profitability through the term of the lease, and closing select locations to ensure our real estate investments align with our new standards." 

So while unprofitable stores may get a second chance under a new brand, the evaluation process is still ongoing.

The home decor retail chain began in 1966 as a franchised gift shop in Jackson, Tennessee. By the '70s, the store was expanding and sourcing exclusive products, and in the '80s, it began evolving with a home decor focus and an expanded footprint.

The retailer is headquartered in Nashville and employs over 4,000 staff members.

Currently, Kirkland's operates 317 stores in 35 states, largely across the eastern United States, with a few across the southwest and in California, as well. These states include:

• Alabama
• Arizona
• Arkansas
• California
• Colorado
• Delaware
• Florida
• Georgia
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maryland
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nebraska
• Nevada
• New Jersey
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Pennsylvania
• South Carolina
• South Dakota
• Tennessee
• Texas
• Virginia
• West Virginia
• Wisconsin

In 2024, Kirkland's was dubbed America's #1 home goods and decor retailer by Newsweek and Statista, which conducted a survey of over 7,000 shoppers to rank the 200 best places to shop. According to the company, they combine great style and great value, and customers love the merchandise and discount prices.

Home decor isn't going out of style, but it is running out of cash — sort of, anyway. Kirkland's did make money according to fourth quarter results, which saw net sales of $148.9 million with $7.9 million in net income, allowing for earnings of $0.51 per share.

But much like people who aren't using top rewards credit cards, the problem for Kirkland's is debt. As of February, the company held $41.9 million in outstanding borrowings.