The company will close 30 stores in January 2008, and anticipates reviewing another 100 units over the next 18 months for potential closure. Many of those to be closed likely will be mall units, as the company continues its shift to off-mall locations. Currently, about 41% of the company's stores are located in malls, and Kirkland's is aiming that percentage to drop to between 15% and 20% of the store count, located in a much tighter geographical spread.

"We are committed to aggressively closing stores. This effort to close underperforming stores will allow us to focus our personnel strategically and geographically," said Robert Alderson, Kirkland's CEO. "A large number of really nasty stores will close a year from January, mainly a group in Philadelphia, New Jersey and New York State that have been underperforming for quite some time."

The 100 units to be reviewed are nearing the end of their leases or can utilize kickout clauses. Just three units, already contracted, will open next year. By the end of the fiscal year, the company will have opened 35 stores in fiscal 2007.