Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):   December 7, 2012

Kirkland's, Inc.
(Exact name of registrant as specified in its charter)

Tennessee 000-49885 621287151
(State or other jurisdiction
(I.R.S. Employer
of incorporation) File Number) Identification No.)
2501 McGavock Pike, Suite 1000, Nashville, Tennessee   37214
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code:   615-872-4800

Not Applicable
Former name or former address, if changed since last report


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) At its meeting on December 7, 2012, the Compensation Committee (the "Compensation Committee") of the Board of Directors formally approved the Company’s fiscal year 2012 Bonus and Non-Equity Incentive Plan (the "2012 Incentive Plan"). The 2012 Incentive Plan sets forth the methodology by which the Company will calculate annual bonuses for fiscal year 2012 for specified employees of the Company, including executive officers, based upon the achievement of specified corporate performance objectives.

The corporate performance objective under the 2012 Incentive Plan has been established by the Compensation Committee and relates to the achievement of a specified level of earnings before adjustments for interest and taxes (EBIT). Bonuses for the named executive officers are based entirely on the Company’s corporate performance objective.
The 2012 Incentive Plan also sets forth the fiscal year 2012 target bonus amounts, expressed as a percentage of base salary, for the following executive officers of the Company, each of whom is considered a "named executive officer" for fiscal year 2012 under U.S. Securities and Exchange Commission rules:


Robert E. Alderson (President and Chief Executive Officer):
Target Bonus of $545,000.00 (which is 100% of base salary)

W. Michael Madden (Senior Vice President and Chief Financial Officer):
Target Bonus of $258,750.00 (which is 75% of $345,000.00 base salary)

Michelle R. Graul (Senior Vice President of Store Operations and HR):
Target Bonus of $180,000.00 (which is 60% of $300,000.00 base salary)

The actual bonus payable to a participating employee under the 2012 Incentive Plan may be more or less than his or her target bonus amount, depending on whether actual performance meets or exceeds the stated objectives.


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    Kirkland's, Inc.
December 12, 2012   By:   /s/ W. Michael Madden
        Name: W. Michael Madden
        Title: Interim President and Chief Executive Officer and Senior Vice President and Chief Financial Officer