SC 13D 1 b43791aisc13d.txt KIRKLANDS INC. CUSIP NO. 497498105 Schedule 13D Page 1 of 12 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (RULE 13D-102) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a) (AMENDMENT NO. __________)(1) Kirkland's Inc. -------------------------------------------------------------------------------- (Name of issuer) Common Stock, par value $0.01 -------------------------------------------------------------------------------- (Title of class of securities) 497498105 -------------------------------------------------------------------------------- (CUSIP number) Janet L. Hennessy, Vice President 617-951-9447 C/o Advent International Corporation, 75 State Street, 29th Floor Boston, MA 02109 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 10, 2002 -------------------------------------------------------------------------------- (Date of event which requires filing of this statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box:. |_| Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. (Continued on following pages) (Page 1 of 1 Pages) -------------------------------- (1)The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP NO. 497498105 Schedule 13D Page 2 of 12 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Advent International Corporation -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 Source of Funds WC -------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 6,306,407 -------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER None -------------------------------------------------- OWNED BY 9 SOLE DISPOSITIVE POWER EACH REPORTING PERSON 6,306,407 WITH -------------------------------------------------- 10 SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 6,306,407 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) %33.4 -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO, IA -------------------------------------------------------------------------------- SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP NO. 497498105 Schedule 13D Page 3 of 12 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Advent International Limited Partnership -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 Source of Funds WC -------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 6,147,359 -------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER None -------------------------------------------------- OWNED BY 9 SOLE DISPOSITIVE POWER EACH REPORTING PERSON 6,147,359 WITH -------------------------------------------------- 10 SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 6,147,359 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) %32.6 -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN -------------------------------------------------------------------------------- SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP NO. 497498105 Schedule 13D Page 4 of 12 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Global Private Equity II Limited Partnership -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 Source of Funds WC -------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 4,637,770 -------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER None -------------------------------------------------- OWNED BY 9 SOLE DISPOSITIVE POWER EACH REPORTING PERSON 4,637,770 WITH -------------------------------------------------- 10 SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,637,770 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) %24.6 -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN -------------------------------------------------------------------------------- SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP NO. 497498105 Schedule 13D Page 5 of 12 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Advent Direct Investment Program Limited Partnership -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 Source of Funds WC -------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Bermuda -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 1,509,589 -------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER None -------------------------------------------------- OWNED BY 9 SOLE DISPOSITIVE POWER EACH REPORTING PERSON 1,509,589 WITH -------------------------------------------------- 10 SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,509,589 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) %8.0 -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN -------------------------------------------------------------------------------- SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP NO. 497498105 Schedule 13D Page 6 of 12 -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) Advent Partners Limited Partnership -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 Source of Funds WC -------------------------------------------------------------------------------- 5 Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 159,048 -------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER None -------------------------------------------------- OWNED BY 9 SOLE DISPOSITIVE POWER EACH REPORTING PERSON 159,048 WITH -------------------------------------------------- 10 SHARED DISPOSITIVE POWER None -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 159,048 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) %0.8 -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN -------------------------------------------------------------------------------- SEE INSTRUCTIONS BEFORE FILLING OUT! CUSIP NO. 497498105 Schedule 13D Page 7 of 12 ITEM 1. SECURITY AND ISSUER (a) (b) This statement on Schedule 13D relates to the Reporting Persons' (as defined in Item 2 below) beneficial ownership interest in Kirkland's Inc. a Tennessee corporation (the "Corporation"). The address of the principal executive office of the Corporation is 805 North Parkway, Jackson Tennessee 38305. ITEM 2. IDENTITY AND BACKGROUND (a) (b) (c) (f) This statement is being filed by the following entities: (1) Advent International Corporation, a Delaware corporation; (2) Advent International Limited Partnership, a Delaware limited partnership; (3) Global Private Equity II Limited Partnership, a Delaware limited partnership; (4) Advent Direct Investment Program Limited Partnership, a Bermuda limited partnership; (5) Advent Partners Limited Partnership, a Delaware limited partnership; Advent International Corporation is a Delaware corporation with its principal and business address at 75 State Street, Boston, Massachusetts 02109. Advent International Corporation is an investment advisory firm. Advent International Corporation is the General Partner of advent Partners LP and Advent International Limited Partnership, which is in turn the general partner of Global Private Equity II Limited Partnership and Advent Direct Investment Limited Partnership. The principal business of Advent International Corporation is private equity investments. The principal business of each of Global Private Equity II Limited Partnership, Advent Direct Investment Program Limited Partnership is to provide risk capital for, and make investments in the securities of, privately held and other businesses. The persons serving as directors and executive officers of Advent International Corporation are set forth on Schedule A hereto. The entities listed in subparagraph (1) through (5) above are herein collectively referred to as the "Reporting Persons" and individually as a "Reporting Person." The principal business address of all of the Reporting Persons is c/o Advent International Corporation, 75 State, Boston, MA 02109. (d) (e) During the last five years, none of the Reporting Persons nor any person listed on Schedule A has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). During the last five years, none of the Reporting Persons nor any person listed on Schedule A has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which any such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violations with respect to such laws. CUSIP NO. 497498105 Schedule 13D Page 8 of 12 ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. The Reporting Persons acquired Class A Preferred Stock and Common Stock of the Corporation for an aggregate price of 19,780,000 on June 13, 1996. The source of the funds used to purchase shares was derived from the working capital of the Reporting Persons. The Reporting Persons acquired Warrants to Purchase Common Stock at $0.01, at a price of $7,159 on July 9, 1999. On August 8, 2000 the reporting persons acquired Class D Preferred Stock, Common Stock and Warrants to purchase Common Stock at $0.01 for an aggregate price of $7,190,003. In conjunction with the Corporations Initial Public Offering, shares of the Class A Preferred Stock were redeemed for cash at the closing of the offering. The remainder of the Class A Preferred Stock and the Class D Preferred Stock was converted to Common Stock. The Common Stock was automatically converted to Common Stock. The Warrants were exercised for Common Stock at the time of the offering, in accordance with the net exercise provision. ITEM 4. PURPOSE OF TRANSACTION. The Reporting Persons acquired the securities of the Corporation strictly for investment purposes. The Reporting Persons intend to periodically review their investment in the Corporation. Depending upon future evaluations of the business prospects of the Corporation and upon other developments, including, but not limited to, general economic and business conditions and market conditions, the Reporting Persons may determine to increase or decrease their equity interest in the Corporation by acquiring additional Securities, or by disposing of all or a portion of the Securities now held. The Reporting Persons have certain registration rights with respect to the Common Stock of the Corporation as outlined in the Amended and Restated Registration Rights Agreement dated April 15, 2002. CUSIP NO. 497498105 Schedule 13D Page 9 of 12 ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a) The following table sets forth the aggregate number and percentage (based upon the number of shares of Common Stock outstanding as of July 10, 2002 of the Common Stock beneficially owned by each Reporting Person named in Item 2 of this statement. The aggregate number and percentage of the Common Stock beneficially owned by each Reporting Person is calculated in accordance with Rule 13d-3.
Number of Shares ------------------------------------- Percentage Under of Shares Reporting Person Common Warrants Total Outstanding -------------------------------------------------------- --------------------------------------------------- Global Private Equity II Limited Partnership (1) 4,637,770 0 4,637,770 24.6% Advent Direct Investment Program Limited Partnership (1) 1,509,589 0 1,509,589 8.0% Advent International Limited Partnership (1) 6,147,359 0 6,147,359 32.6% --------- --------- ----- Advent Partners Limited Partnership (2) 159,048 0 159,048 0.8% --------- --------- ----- Advent International Corporation (1), (2) 6,306,407 0 6,306,407 33.4% ========= ========= ===== Total Group 6,306,407 0 6,306,407 33.4% ========= ========= =====
(1) Advent International Corporation ("AIC") is the General Partner of Advent International Limited Partnership ("AILP") which in turn is the General Partner of the indicated Reporting Persons. As such, AIC has the sole power to vote and dispose of the securities owned by the indicated Reporting Persons. The beneficial ownership of AIC and AILP derive from such power. (2) AIC is the General Partner of the indicated Reporting Person. As such, AIC has the sole power to vote and dispose of the securities of APLP. The beneficial ownership of AIC derives from such power. (b) Each of the Reporting Persons listed in the table set forth above has sole voting and dispositive power over the Common Stock beneficially owned by it as indicated above. (c)(d) (e) Not applicable. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. See Item 4. CUSIP NO. 497498105 Schedule 13D Page 10 of 12 ITEM 7. MATERIALS TO BE FILED AS EXHIBITS. Exhibit A: Amended and Restated Registration Rights Agreement dated April 15, 2002. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) CUSIP NO. 497498105 Schedule 13D Page 11 of 12 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. July 19, 2002 Global Private Equity II Limited Partnership Advent Direct Investment Program Limited Partnership By: Advent International Limited Partnership, General Partner By: Advent International Corporation, General Partner By: Janet L. Hennessy, Vice President* Advent Partners Limited Partnership By: Advent International Corporation, General Partner By: Janet L. Hennessy, Vice President* ADVENT INTERNATIONAL CORPORATION By: Janet L. Hennessy, Vice President* *For all of the above: --------------------------------- Janet L. Hennessy, Vice President -------------- CUSIP NO. 497498105 Schedule 13D Page 12 of 12 SCHEDULE A The name and present principal occupation of each executive officer and director of Advent International Corporation is set forth below. The business address of each executive officer and director of Advent International Corporation is c/o Advent International Corporation, 75 State Street, Boston, Massachusetts 02109. All of the persons listed below are United States citizens. I. Advent International Corporation
Position with Principal Advent International Occupation Name Corporation (if different) ---- ----------- -------------- Peter A. Brooke Chairman Douglas R. Brown Chief Executive Officer President Director Thomas H. Lauer Senior Vice President Chief Financial Officer Assistant Secretary Janet L. Hennessy Vice President Assistant Secretary Mark Hoffman Director Chief Executive Officer of Hamilton Lunn Limited Frank Savage Director Senior Vice President of Equitable Life Assurance Society Vice Chairman of Equitable Capital Management Corp. David W. Watson Secretary Attorney