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May-03-2008

Linens 'N Things Gets Bankruptcy-Loan Approval From Judge

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NEW YORK (Reuters) - Home goods retailer Linens 'n Things has filed for Chapter 11 bankruptcy protection and plans to close 120 underperforming stores, the company said on Friday. (More...)
"Linens Holding Co. ("LNT" or the "Company"), a leading home furnishings specialty retailer operating as "Linens 'n Things," announced today that the Company and its U.S. subsidiaries have filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware," according to a company news rlease. (More...)
CLIFTON, N.J. Household goods retailer Linen 'n Things Inc. has filed for bankruptcy protection but plans to keep operating most of its stores while it reorganizes. (More...)
Management filed for bankruptcy due to the impact of the current economic downturn on the Company's operating performance, according to a company statement. (More...)
The company has asked the bankruptcy court for permission to honor gift cards and store credits. (More...)
The Clifton, N.J. -based company was acquired by investment firm Apollo Management in 2006. (More...)
Business - Linen 'n Things to close stores - sacbee.com Some features on this site require that JavaScript be turned on. (More...)
The filing was made in U.S. Bankruptcy Court in Delaware under Chapter 11 of the bankruptcy code, which provides protection from creditors while a debtor reorganizes. (More...)
As of December29, 2007, Linens ' n Things operated 589 stores in 47 states and seven provinces across the United States and Canada. (More...)
Linens sold $146 in merchandise per square foot in 2007, down from $166 per square foot in 2004, according to a Wall Street Journal story last month. (More...)
CompUSA closed in Vintage Commons last year. (More...)
David Coder, the executive vice president of store operations, has been appointed president and chief operating officer. (More...)
Rich Tauberman, a spokesman with Clifton, N.J. -based Linens Holdings, said the approximately 20 employees at the Broomfield location were notified today. (More...)

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NEW YORK (Reuters) - Home goods retailer Linens 'n Things has filed for Chapter 11 bankruptcy protection and plans to close 120 underperforming stores, the company said on Friday. The struggling seller of textiles, housewares and other home goods also said it had secured $700 million in financing from General Electric Co's (GE.N: Quote, Profile, Research ) GE Capital affiliate to ensure it can stock its stores with merchandise for the back-to-school and holiday shopping seasons. [1] The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years, said Executive Chairman Robert J. DiNicola. The company said that filing for Chapter 11 provides the company with the tools to restructure its balance sheet, close under-performing store locations, revisit certain agreements and position the company for long-term success. Filing for Chapter 11 under the bankruptcy code frees a company from the threat of creditor lawsuits while it reorganizes its finances. The company also announced that as part of its financial restructuring it plans to close 120 underperforming stores, a quarter of which are in California. Linens 'n Things says its stores will remain fully operational.[2] 'The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years,' says Robert DiNicola, executive chairman. 'We are making the strategic decision to use a Chapter 11 filing to proactively address our capital structure and ensure that our stores will remain well stocked while we work through the steps to align the capital structure of the company with the realities of today's business environment,' he says. The retailer is owned by privately held Linens Holding Co. of Clifton, N.J. The company says none of its Canadian states, 'which are among the strongest performers in the chain,' is involved in the filing today with the U.S. Bankruptcy Court in Delaware.[3]

Linens Holding Co., a Clifton-based home-furnishings specialty retailer that operates as Linens 'n Things, announced today that the company and its U.S. subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. The national home-furnishings chain says it will continue to operate its stores without interruption during the reorganization.[4] CLIFTON, N.J., May 2 (UPI) -- Linens Holding Co. of Clifton, N.J., filed for Chapter 11 bankruptcy protection Friday to restructure debt on 120 U.S. stores, a company statement said. The national home furnishing chain, better known as Linens 'n Things, said the filing does not pertain to its stores in Canada. The filing will allow the company to "restructure its balance sheet, close under-performing store locations, revisit certain agreements and position the company for long-term success," the statement said.[5] The parent company of Linens 'n Things has filed for Chapter 11 bankruptcy protection, citing the rough economy. The company will close 120 of its underperforming stores, including all five Kansas City-area stores. In a release Friday, Linens Holding Co., based in Clifton, N.J., said the home furnishings chain will continue to operate its stores during the reorganization.[6]

On Friday bedding and home furnishing retailer Linens 'n Things became the latest in a string of retailers that filed for Chapter 11 bankruptcy protection. The company said it doesn't plan on filing for bankruptcy in Canada, where its stores are among the strongest performers in the chain. Linens 'n Things said its decision to file for bankruptcy protection was driven largely by the impact of the current economic downturn on the company's operating performance.[2] Clifton, NJ-based, Linens 'N Things, the country's second largest home furnishings and accessories retailer filed Chapter 11 today. The company said in a statement that its stores will continue to operate without interruption, including being fully stocked with merchandise, during the reorganization process. Part of its financial restructuring plan involves the closure of 120 underperforming U.S. stores, more than 20% of its entire 589-store fleet. This bankruptcy filing only pertains to the retailer's U.S. operations, as it said its Canadian stores are "among the strongest performers in the chain."[7]

Linens Holding Co., parent of home interiors retailer Linens 'n Things, has filed for Chapter 11 bankruptcy and is closing 120 stores across the country, including one in Austin. The Clifton, N.J. company says its decision to file bankruptcy was driven in large part by effect the current economic downturn has had on its sales. "Filing for Chapter 11 provides with the tools to restructure its balance sheet, close under-performing store locations, revisit certain agreements and position for long-term success," the company said in a statement.[8] BROOMFIELD- Linens Holding Co., a home furnishings retailer doing business as Linens 'n Things, has filed for Chapter 11 bankruptcy and will close 120 underperforming stores including its Broomfield location.[9] The parent company of home furnishings retailer Linens 'n Things Inc. has filed for Chapter 11 bankruptcy protection and plans to close 120 stores, none in the St. Louis, Mo., area.[10] Home furnishings retailer Linens 'n Things has filed for Chapter 11 bankruptcy protection, and says it will close 120 stores nationwide, including its Houston location at West Oaks Mall.[11]

Linens 'n Things, the bedding and home-furnishing retailer, filed for Chapter 11 bankruptcy protection today and said it will close 120 stores.[12]

NEW YORK (AP) — A Chapter 11 bankruptcy filing by Linens 'n Things is the latest sign that the retail sector is becoming leaner and meaner amid a difficult consumer environment. The bedding- and home-furnishing retailer filed a petition in bankruptcy court in Delaware and said it would close 120 underperforming stores, almost a quarter of them in California.[13] Linens 'n Things will remain open in Fairview Heights following the company's bankruptcy filing Friday. The New Jersey-based company filed for Chapter 11 bankruptcy in a Delaware court and announced that it was closing 120 of its 589 stores. Almost a quarter of those closures will be those stores in California, but not the store at 6005 N. Illinois St. in Fairview Heights.[14]

Overall, the company has 589 stores in 47 states. Linens 'n Things said in its filing in federal bankruptcy court in Delaware that it has less than 50 creditors and has arranged $700 million in debtor-in-possession financing. The company was bought by the investment firm Apollo Management two years ago but has seen its losses grow as the housing market collapsed and consumer spending decreased.[12] May 3 (Bloomberg) -- Linens 'n Things Inc., the bankrupt housewares retailer, will be able to keep operating while it shuts 120 stores and reorganizes after winning interim permission to borrow $700 million to pay off older loans. Should the company, taken private by Apollo Management LP, win final approval later this month, the money will be used mainly to pay off a group of 10 lenders owed at least $430 million, including General Electric Capital Corp., hedge fund operator Silver Point Finance LLC, and JPMorgan Chase & Co. Winning interim approval helped the company, its lenders and bondholders avoid "a fight at the outset of the case, which would not have helped the debtors' ability to restructure,'' company attorney Mark Collins told U.S. Bankruptcy Court Judge Christopher Sontchi in Wilmington, Delaware.[15]

"The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years," said Executive Chairman Robert J. DiNicola. Linens 'n Things has secured $700 million in debtor-in-possession financing from General Electric Capital Corp. The company says the financing will provide adequate working capital to meet its ongoing obligations during the restructuring and to ensure its stores remain well stocked with merchandise.[4] In conjunction with the filing, Linens '''n Things has secured $700 million debtor-in-possession financing from General Electric Capital Corp. to help insure the flow of merchandise as the company prepares for the back-to-school and holiday selling seasons. These closings follow several months of similar news from a wide spectrum of retailers. Home Depot said earlier in the week it would close 15 stores and scale back growth plans and Disney, having newly regained control of its stores from Children's Place, said it would close 98 locations.[16]

The company's parent, Linens Holding filed a petition in the United States Bankruptcy Court for the District of Delaware. It requested that the court immediately authorize its filing so it can continue paying employee salaries and benefits as well as honor gift cards and store credits as normal. The company said it secured $700 million in debtor-in-possession financing from General Electric (nyse: GE - news - people ) Capital, which will allow it to keep its stores stocked to prepare for its back-to-school and holiday shopping seasons. The company said the financing would provide it with adequate working capital to meet its ongoing obligations while it is restructuring.[2] The company said it has requested immediate authorization and expects approval from the court to continue paying employee salaries and benefits, and to honor gift cards and store credits as normal. Linens Holding Co. has secured $700 million in debtor financing from General Electric Capital to maintain its merchandise flow, the release said. Tauberman said the weak housing market was a big factor in the company's sales performance over the past two years, and the slowdown has been especially pronounced in states such as California.[17]

"Linens Holding Co. ("LNT" or the "Company"), a leading home furnishings specialty retailer operating as "Linens 'n Things," announced today that the Company and its U.S. subsidiaries have filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware," according to a company news rlease. "The national home furnishings chain will continue to operate its stores without interruption during the reorganization and the stores are open for business and expect to be well stocked with merchandise. [18] CLIFTON, N.J.--( BUSINESS WIRE )--Linens Holding Co. ( " LNT " or the " Company " ), a leading home furnishings specialty retailer operating as " Linens ' n Things, " announced today that the Company ' s decision to pursue a voluntary filing under Chapter 11 of the United States Bankruptcy Code pertains only to LNT ' s operations in the United States and not the Company ' s Canadian stores.[19]

Linens Holding Co., the operator of the Linens 'n Things home-furnishings retail chain, filed for Chapter 11 bankruptcy protection, with plans to shut 120 underperforming stores, as the debt-burdened company struggles amid an economic slowdown.[20] The holding company that operates Linens 'n Things housewares stores filed for bankruptcy protection yesterday and said it plans to close 120 underperforming stores, including those in Mohegan Lake and Greenburgh.[21] The parent company of Linens N Things announced Friday that it has filed for bankruptcy protection and will close 120 underperforming stores - including the one at Yuma Palms Regional Center.[22]

Housewares retailer Linens n' Things Inc. has filed for Chapter 11 bankruptcy protection and plans to close 120 stores, including two in Minnesota. The Clifton, N. J. -based retailer, which operated 589 locations as of Dec. 29, will close its stores in Woodbury and Rochester.[23] NEW YORK (AP) - Four Colorado stores are among 120 that New Jersey-based Linens 'n Things plans to close after filing for Chapter 11 bankruptcy protection.[24] The Linens 'n Things store at the Millcreek Mall Pavillion is among 120 nationwide that will close in the wake of the New Jersey-based company's filing for bankruptcy protection Friday. The company, which operated 589 stores in 47 states as of Dec. 31, identified the local store as among those that has been underperforming.[25]

GRAND RAPIDS -- Linens 'n Things is dramatically reducing its presence in Michigan as the company files Chapter 11 bankruptcy, with plans to close about 20 percent of its 589 retail stores spread across 47 states. The national bedding and home-furnishing retailer is closing nine of its 13 stores in Michigan.[26] Five Inland stores are on a list of 120 nationwide that struggling home furnishings retailer Linens 'n Things plans to close as part of a Chapter 11 bankruptcy filing announced Friday.[17] Struggling home retailer Linens 'n Things will close its Natomas location in a Chapter 11 bankruptcy filing that will shut 120 stores nationwide, officials announced Friday.[27]

A Tracy store that has 19 employees also will close within the next few months, but the Linens 'n Things in Merced will remain open. New Jersey-based Linens Holding Co., the stores' parent company, filed for Chapter 11 bankruptcy and announced the closure of 120 of its more than 500 stores nationwide.[28] A day after The Home Depot Inc. announced it will close 15 stores, Linens Holding Co. today said it will file for Chapter 11 bankruptcy and close 120 of its Linens 'n Things stores, including three in Wisconsin.[29] Going up against Bed, Bath & Beyond in a weak economy where fewer people are moving house, struggling home furnishings chain Linens 'n Things announced Friday that it will close 120 stores nationwide, including four in the Chicago area, under a Chapter 11 bankruptcy claim.[30] Linens 'n Things apparently ran out of time to fix up its financial house. The bedding and home furnishings chain filed for Chapter 11 bankruptcy protection in Delaware -- just two weeks after its vendors required "cash before delivery" payment and three weeks after the company hired Financo to look for a buyer.[31] Long-struggling retailer Linens 'n Things filed for chapter 11 bankruptcy protection Friday morning, ending weeks of speculation and expectation. Linens has been losing money for years and in recent months had difficulty keeping up with payments to its lenders and vendors. A number of retailers have sought bankruptcy protection recently, such as Sharper Image, Bombay Co. and Lillian Vernon, but Linens is by far the largest retailer to file in years. It has been hurt by a downturn in consumer spending and an over-leveraged balance sheet. Linens Executive Chairman Robert DiNicola, who has relinquished his CEO title, said the retailer hopes to get out of bankruptcy by the end of the year. "By 2009 we will be out and we will have an operation that makes sense,' he said in an interview.[32] NEW YORK (AP) — Bedding- and home-furnishing retailer Linens 'n Things on Friday filed for Chapter 11 bankruptcy protection, the latest major retailer to succumb to the difficult consumer environment.[33]

Wilmington, DE (AHN) - A U.S. bankruptcy court has approved Linens 'n Things' temporary bankruptcy protection, which allowed the furniture and homeware retailer to borrow $700 million from General Electric Capital Corp., reports said Friday.[34] Linens 'n Things, which operates about 589 retail stores in 47 states, joins specialty retailers Sharper Image Corp. and Lillian Vernon Corp. in seeking bankruptcy protection. Flickinger said this may just be the beginning. "There is going to be a record number of store closings through bankruptcy in the next 150 to 1500 days, as the retail recession becomes the worst the U.S. has seen in 30 years," he said.[13]

Robert DiNicola, company's current Chairman and chief executive, will become Executive Chairman. Linens also clarified that its bankruptcy filing pertains only to its operations in the U.S. and not Canadian stores. It is to be noted that, Linens 'n Things operated 589 stores as of December 29, 2007, in 47 states and seven provinces across the United States and Canada.[35] The Linens 'n Things bankruptcy filing this morning is a wake up call for anybody who is walking around with unused gift cards in their wallets. (I have four of them myself, but luckily, none are from any bankrupt retailers.) When a retailer files for bankruptcy, the company can't redeem gift cards unless the bankruptcy judge gives them permission. Linens 'n Things has a motion in court in Delaware to allow them to honor gift cards and store credits, and it looks like they will be able to do it.[36]

Leon Black threw in the towel on Linens 'n Things today. The country's second largest seller of home furnishings, which was taken private by Mr. Black's Apollo Management late in 2005, filed for bankruptcy this morning in a Delaware court. The company, which failed to make scheduled interest payments on its debt several weeks ago, was expected to file for protection from creditors. The company cited the housing sector and weakening economy as reasons for its woes.[37] There was no reorganization plan filed with the Delaware court Friday morning, and an affidavit from the company's chief financial officer, Francis Rowan, didn't say how the company's debt, including $650 million in notes, would be restructured. How much could Apollo and its fellow investors lose? Regulatory filings show they put up nearly $650 million in equity in the Linens 'n Things buyout.[38] The timing of the filing was a bit of a surprise, because the 30-day grace period on the company's bond-interest payment hadn't yet expired. Linens 'n Things said in court filings that its lender, GE Capital, has agreed to provide a $700 million credit line while it reorganizes, subject to court approval.[38] Tauberman noted that the company has secured $700 million in debtor-in-possession financing from General Electric Capital Corp., which will ensure healthy merchandise flow as the Linens 'n Things prepares for the back-to-school and holiday selling seasons.[39] Linens 'n Things said it has secured $700 million in debtor-in-possession (DIP) financing from General Electric Capital Corp., allowing it to continue to buy merchandise in preparation for the crucial back-to-school and holiday selling seasons.[40] In the filing, Linens 'n Things said it has fewer than 50 creditors and funds will be available for distribution to unsecured creditors. It has arranged $700 million in debtor-in-possession financing, mainly from General Electric Capital Corp.[31]

Multi-channel specialty retailer Sharper Image Corp. (SHRPQ.PK), Levitz and Lillian Vernon were among the retailers who filed for bankruptcy in recent times. Linens also revealed that it has secured $700 million in debtor-in-possession financing from General Electric Capital Corp. The company said it expects this facility to provide adequate working capital to meet its ongoing obligations during the restructuring and ensure healthy merchandise flow, as it prepares for the back-to-school and holiday selling seasons.[35] Linens Holding also said it has secured $700 million in debtor-in-possession financing from General Electric Capital Corp., which will keep products on the shelves at the company's remaining stores as the bankruptcy progresses.[11] Linens Holding has secured $700 million in debtor-in-possession financing from General Electric Capital Corp., which will ensure healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons. The company says it's been working with key vendors supporting the company with new merchandise in recent weeks.[8]

Linens 'n Things executives said the company has secured $700 million in financing to ensure merchandise flow during the busy back-to-school and holiday selling seasons.[25]

The company named David Coder, currently the executive vice president, as president and chief operating officer. Gries previously was a partner at Ernst & Young LLP. He earned a bachelor's degree in accounting from Northeastern University, according to the firm's Web site. In addition to closing stores, Linens 'n Things said it plans to restructure its balance sheet and renegotiate some contracts. That means negotiating with its lenders as well as their primary representative, General Electric.[41] Linens 'n Things' board of directors has named Michael F. Gries, a financial restructuring expert, chief restructuring officer and interim CEO. Under the restructuring plan, DiNicola, the company's current chairman and CEO, will become executive chairman.[4] Michael F. Gries, a noted financial restructuring expert and co-founder of Conway Del Genio Gries & Co., has been named chief restructuring officer and interim CEO. David Coder, currently executive VP, store operations, has been appointed president and COO. By filing for Chap. 11, Linens '''n Things hopes to restructure its balance sheet, close underperforming stores, revisit certain agreements and position the company for long-terms success.[16]

GRAND RAPIDS, Mich. (WOOD) - All three Linens 'n Things stores in West Michigan will close as part of the company's bankruptcy filing.[42] GRAND RAPIDS - Three Grand Rapids area Linens 'n Things stores are among nine that will close in Michigan as the retailer files Chapter 11 bankruptcy, the company announced today.[43] The company joins the list of retailers filing for bankruptcy as the economy roils. The latest retailer to file for bankruptcy is Linens Holding Co., parent of Linens 'n Things, which mentioned the current economic downturn in its Chapter 11 filing.[40]

Linens 'n Things' downsizing will create more vacancies at malls, but it could provide some mall operators the opportunity to adjust to the current economy, real estate experts said. "Although the magnitude of this bankruptcy filing cannot be disputed, recent bankruptcy filings and store closings create new opportunities for other retailers to acquire space in the nation's shopping malls," said Dan Ansell, a partner at Greenberg Traurig LLP and chairman of its real estate operations division. "It also creates opportunities for shopping centers to redefine their tenant mix and thus adapt to current economic trends."[28] Walter Loeb of Loeb Associates Inc. said Linens 'n Things has struggled for the past two years because of a lack of funding, a failure to present enough enticing merchandise and problems getting suppliers to provide enough merchandise on credit. "Customers have been disappointed while shopping," he said. Loeb said he believes the company will survive because the industry has a good customer base that looks for competition in the market, yet the bankruptcy will hurt everyone in the housewares business for a limited time while Linen 'n Things liquidates the stores that are closing.[30] Modesto's Linens 'n Things store will close in the next few months as the parent company reorganizes after filing for bankruptcy Friday.[28] Home furnishings retailer Linens 'n Things announced Friday it will close four Illinois stores as it files for bankruptcy protection.[44] Linens 'n Things has 589 stores in the U.S. and Canada. Its Canadian outlets are performing well and are not included in the bankruptcy protection application, the retailer said.[45] U.S. retailer Linens 'n Things has filed for bankruptcy protection, citing problems in the housing market and the credit squeeze. Consumers cutting back on discretionary spending hit demand for its furnishings and homewares.[45] Linens 'n Things (LNT) and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection Friday.[46] Linens 'n Things, which was bought by Leon Black's buyout firm Apollo Management in 2006, is among the largest companies taken private in the recent buyout boom to file for Chapter 11 bankruptcy protection.[1]

The move is a blow to Apollo Management, Leon Black's private equity firm, which bought the company, along with a consortium of investors, for $1.3 billion in February 2006. Since at least mid-April, when it deferred an interest payment on its bonds, Linens 'n Things has been negotiating with creditors and looking for a buyer in hopes of avoiding a bankruptcy filing. Those efforts fell short, leading to Friday's filing in Delaware.[38] Linens 'n Things is owned by Apollo Management, a New York investment firm that took the company private in 2006 for $1.3 billion.[27] Linens Holding Co. -- which operates as Linens 'n Things -- is owned by New York private investment firm Apollo Management, which took the retailer private in 2006 for $1.3 billion.[26]

May 2 (Bloomberg) -- Linens 'n Things Inc., the U.S. housewares retailer taken private for $1.3 billion by Apollo Management LP, filed for bankruptcy in the biggest leveraged buyout failure since credit-market disruptions began last summer.[41]

As of Dec. 29, Linens 'n Things' parent company Linens Holdings Co had $1.74 billion in total assets and $1.42 billion in liabilities, according to a filing with the U.S. Securities and Exchange Commission.[1] Linens 'n Things had 2007 sales of about $2.8 billion. Its bankruptcy filing listed debts of $1.42 billion and assets of $1.74 billion as of Dec. 29.[17] As of December 29, 2007, Linens Holdings had $1.74 billion in assets and $1.42 billion of debt. This bankruptcy filing by Linens may have a positive impact on Union, New Jersey-based Bed Bath & Beyond Inc.' s (BBBY) due to the store locations.[35] Linens, and its parent, Linens Holding, Co. filed for bankruptcy yesterday, listing debt of $1.42 billion and assets of $1.74 billion as of Dec. 29. The company blamed its bankruptcy on a slowdown in consumer spending and said it followed an unsuccessful overhaul attempt in 2006 after Apollo took control in a leveraged buyout.[15]

Linens Holding Co. and its U.S. subsidiaries filed the voluntary petition in U.S. Bankruptcy Court for the District of Delaware. The company said the filing does not include its Canadian stores. The company said the decision to file was driven largely by the impact of the current economic downturn on its operating performance.[10] The retailer, which currently operates 589 stores, cited declining sales in a slumping economy as it filed for bankruptcy protection under Chapter 11 in a U.S. bankruptcy court in Delaware. A company release said the filing will allow it to restructure its balance sheet and close underperforming stores.[17] Regina will get to keep its Linens-N-Things store, despite its U.S. parent company filing for bankruptcy. The home goods chain has filed for Chapter 11 bankruptcy protection, as it struggles with the credit crunch and related downturn in consumer spending in the U.S. But spokesperson Susan Kenney says this only affects the''American operations, and that''the chain is actually quite successful on this side of the border.[47] The five Georgia stores closing are: Perimeter Mall, Atlanta; Uptown Square Shopping Center, Fayetteville; Stonecrest Marketplace, Lithonia; Macon Mall, Macon; and Southlake Pavilion, Morrow. Filing for Chapter 11 under the bankruptcy code frees a company from the threat of creditor lawsuits while it reorganizes its finances. The company emphasized that its other U.S. stores will remain open and stocked, and that gift cards will be honored. Its 40 Canadian stores, which are among the best performing in the chain, are not part of the bankruptcy filing. Other retailers have been hit by cut backs in consumer spending. Sharper Image, Bombay and Lillian Vernon have also filed for bankruptcy this year.[31]

The bedding- and home-furnishings retailer's parent, Linens Holding Co., has filed a petition for Chapter 11 bankruptcy protection in Delaware. In March the company said its fiscal fourth-quarter loss widened. It has said it was planning to cut costs and reduce staff to turn around results in a "highly leveraged" situation.[48] Retailers Sharper Image Corp., Lillian Vernon Corp., Bombay Co. and Levitz Furniture Inc. have also filed for bankruptcy protection as credit becomes harder to obtain and consumers grappling with higher grocery and gasoline costs cut back on non-necessary purchases. The company said its board named Michael F. Gries, a restructuring expert, to be chief restructuring officer and interim chief executive. He replaces DiNicola as chief executive.[21] "As we move forward with LNT's restructuring, the Board and I concluded that we needed to have additional restructuring expertise on our executive team," said DiNicola. "Michael Gries is as good as it gets in this area, a nationally recognized leader with the deep experience in driving the financial initiatives necessary to position our company for the future." Other retailers that have filed for bankruptcy protection this year include Sharper Image Corp. and Lillian Vernon Corp., as more and more individuals feel the bite of the economic slowdown.[40]

CLIFTON, N.J. Household goods retailer Linen 'n Things Inc. has filed for bankruptcy protection but plans to keep operating most of its stores while it reorganizes. It is closing 120 'under performing' stores, including 24 in California. Of those, stores in Modesto (Sisk Road Center), Sacramento (Natomas Promenade) and Tracy in the Central Valley will be closed, it says. [3] NEW YORK (AP) — Linens 'n Things is filing for bankruptcy protection, the latest major retailer to succumb to the difficult retail environment.[48] NEW YORK -- A Chapter 11 bankruptcy filing by Linens 'n Things is the latest sign that the retail sector is becoming leaner and meaner amid a difficult consumer environment.[49]

'''The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that the company has made over the past two years,''' said Robert J. DiNicola, executive chairman at Linens 'n Things, in a statement. This is a new title for DiNicola.[16] Like many retailers of home-related goods -- including Bed Bath & Beyond Inc (BBBY.O: Quote, Profile, Research ) and Williams-Sonoma Inc (WSM.N: Quote, Profile, Research ) -- Linens 'n Things has struggled mightily in the wake of the U.S. housing bust and global credit crisis. Executive Chairman Robert DiNicola said those issues "overwhelmed the operating and merchandising improvements that we have made over the past two years."[1]

With more than 500 stores in the United States, Linens 'n Things is the nation's second-largest housewares chain, after Bed Bath Beyond. It has been losing money as a turnaround plan failed to boost sales and the housing crisis has slowed consumer spending and led vendors to tighten their credit terms.[38] Plans are to close about 120 outlets of the 589-store Linens 'n Things chain, reshuffle debt and get the company out of bankruptcy by the end of the year, Linens 'n Things attorney Collins told the judge. He is with the firm of Richards, Layton & Finger.[50] Four years after it opened, the Linens 'n Things store at the Shops of Grand Avenue is shutting down, one of three in Wisconsin that will close as part of the retail chain's bankruptcy reorganization.[51]

Linens 'n Things will ask the bankruptcy court to let it close 120 of its 589 stores, including five of its 20 Georgia stores.[31] Linens 'n Things has become one the biggest companies taken private in the recent buyout boom to land in bankruptcy court. The seller of housewares and bedding filed for Chapter 11 protection Friday morning after failing to arrange an out-of-court solution to its liquidity problems.[38] Linens '''n Things said it has filed for protection under Chap. 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.[16]

The chain sought protection in the U.S. Bankruptcy Court in Delaware, according to court papers filed today. The retailer plans to ask permission to close 120 of its 589 stores, which will result in about 2,500 jobs lost, interim Chief Executive Officer Michael Gries said in a telephone interview.[41] The company's Evansville location isn't expected to close. The bedding- and home-furnishing retailer filed its petition in U.S. Bankruptcy Court in Delaware and revealed plans to close 120 underperforming stores, almost a quarter of them in California.[46] The company says it expects approval from the bankruptcy court to continue paying employee salaries and benefits, as well as to honor gift cards and store credits. As part of its financial restructuring, the retailer also announced plans to close 120 underperforming stores, including three New Jersey locations in Howell, Mays Landing and Woodbridge.[4]

The bedding- and home-furnishing retailer filed a petition in bankruptcy court in Delaware and said it would close 120 underperforming stores.[49]

The company filed with the U.S. Bankruptcy Court for the District of Delaware. The filing pertains only to the company's U.S. operations, not its Canadian stores.[6] The company's parent, Linens Holding Co., filed a petition in bankruptcy court in Delaware.[33]

The stores' parent company, Linens Holding Co., has voluntarily filed for Chapter 11 restructuring. They are among nine Michigan stores being shut down. The company blames its troubles on the current downturn in the mortgage, housing and credit markets.[42]

Linens 'n Things, a home furnishings specialty retailer, said it will continue to operate a store in Rancho Mirage without interruption during Chapter 11 reorganization.[39] At the end of last year, Linens 'n Things operated 589 stores in 47 states. Mr. Black could lose most, if not all, of his $650 million equity investment in the retailer.[37] Most of the cash, totaling $19.8 million, helped finance the conversion of the former Marshall Field's building into offices, a Residence Inn hotel and a Borders bookstore; renovations at the Boston Store building, which includes corporate offices for Boston Store owner Bon-Ton Stores Inc. and apartments; and development of the Marriott Courtyard hotel, according to Michael Daun, deputy city comptroller. Those funds, and their interest payments, will be repaid over 20 years, or by 2020, according to city projections. Another $6.4 million was spent renovating the Grand Avenue's common areas, including $5 million to renovate the Plankinton Arcade to accommodate Linens 'n Things and T.J. Maxx. Those funds, along with interest, will be repaid over 15 years, or by 2016.[51]

The company estimates it owes money to about 120,000 creditors. Linens 'n Things employs about 15,900 workers in its 551 U.S. locations. It has a monthly payroll of $25 million and spends about $300 million a year for rent.[41] Linens 'n Things' failure to pay the bond interest in April entitled the banks to ratchet up the interest rate by 2% and restrict cash available to the company. The banks agreed to forbear from exercising their remedies for the missed bond payment to give Linens 'n Things time to stabilize its financial situation. The company, which has a $25 million monthly gross payroll, took refuge in bankruptcy to preserve its business.[50] The largest unsecured creditors listed in court filings are Yankee Candle Co., owed $4.6 million, and Aeolus Down L/C, owed $4.3 million. Gries said he expects Linens 'n Things to be in bankruptcy for six to eight months and wants to have a negotiated proposal in 60 days.[41] GE's finance arm put together a $625 million revolving credit line in October. Linens 'n Things owes $430 million on that line, its finance chief, Francis M. Rowan, said in court papers.[41] The credit facility would, in some sense, roll over the $700 million facility that a group led by GE Capital provided to Linens 'n Things last year.[38]

Apollo, founded by Black in 1990, led a group of investors that bought Linens 'n Things in 2006. Apollo put $260 million of equity in the buyout, about 2 percent of its fifth fund, which totals $13 billion. Apollo's most recent funds are "in very good shape,'' Black wrote in a Feb. 29 letter to clients of the New York-based fund, even though its $6.6 billion buyout of real-estate services firm Realogy Corp. has also been hurt by the worst housing market in at least a quarter century.[41] The collapse of the housing market, the credit crunch and declining consumer confidence exacerbated Linens 'n Things' financial problems, legacy of a 2006 buyout by Apollo Management and other private equity investors that left it loaded with debt.[50] The bankruptcy comes two years after private-equity firm Apollo Management bought Linens 'n Things, underscores the risks buyout firms have been taking lately when buying cyclical companies. Historically, they have preferred to buy more plodding, cash-flow-rich, non-cyclical companies, which can more comfortably and predictably handle the added debt load when they are bought and taken private.[40] Clifton, N. J. -based Linens 'n Things, taken private in 2006 when it was purchased by Apollo Management LP, lists $1.42 billion in debt and $1.74 billion in assets.[10] Saddled by debt from the $1.3 billion transaction, Linens 'n Things never caught up to rival Bed Bath & Beyond in terms of sales per square foot.[31]

Linens 'n Things, with sales of about $2.8 billion in 2007, operated 589 stores in 47 states and seven provinces across the nation and in Canada as of December 2007.[39] Before the Chapter 11 filing, Linen 'n Things, based in Clifton, N.J., operated nearly 600 stores nationwide and in Canada, with sales of about $2.8 billion.[27]

CLIFTON, NJ-Linens 'n Things is filing for Chapter 11 bankruptcy protection and closing 120 of its 589 stores, in a move that retail observers have anticipated for months. The closings are taking place in 34 states, and management did not give a timeline as to when they will be shut.[52]

The Wisconsin Linens 'n things stores to be closed are the stores at the Shops of Grand Avenue in Milwaukee, the Regency Mall in Racine and Greenway Station in Middleton. Clifton, N.J. -based Linens Holding Co. blamed its bankruptcy and the store closings on the icy economy.[29] Rich Tauberman, a spokesman for Linens Holding Co., said Friday that he has no information to release at this time on the status of the Linens 'n Things store that was expected to open in Palm Springs new Smoke Tree Commons retail center along Highway 111.[39]

Linens 'n Things, which operates about 589 retail stores in 47 states, is the latest retailer to be hit by the weakening retail environment as consumers cut back.[33] Some experts said that with retail sales in a significant slide, other large stores could follow Linens 'n Things, The Sharper Image and Levitz into bankruptcy in the next few months. A Modesto Levitz store closed this year. The Associated Press contributed to this report.[28] Linens 'n Things store is casualty of company bankruptcy Your browser either doesn't support JavaScript or it is disabled.[53] The company's Canadian stores — which Linens 'n Things said are among the best performing stores — are not included in the filing.[13] In the SEC filing related to the Chap. 11 filing, Linens 'n Things said DiNicola has resigned as president and CEO of the company and remains as chairman.[16]

The Linens 'n Things in Broomfield is located at 120 E. Flatiron Circle. Chapter 11 is the most common form of bankruptcy, and the action frees the company from the threat of creditors' lawsuits while it reorganizes its finances. The debtor's reorganization must be accepted by a majority of its creditors.[9] Linens 'n Things' decision to file for Chapter 11 protection was driven largely by the impact of the current economic downturn on the company's operating performance, according to a statement from the company.[16]

The company began a turnaround effort in 2006 aimed at improving marketing while reducing the array of items it sells but the strategy wilted in the wake of a weakening U.S. economy. The company had been in negotiations with its creditors, including General Electric. The Chapter 11 filing allows Linen 'n Things to reorganize its finances while freeing the company from the threat of creditor lawsuits.[1]

Five of eight local locations will be closed as part of a bankruptcy filing by retailer Linens 'n Things.[17] While the Rancho Mirage store will remain open, Linens 'n Things released a statement Friday noting that 120 store locations will close in more than 30 states around the nation, including 27 stores in California.[39] Linens 'n Things operates nearly 600 stores in 47 states and seven provinces across the United States and Canada, including 23 locations in New Jersey.[4]

Linens 'n Things, based in New Jersey, plans to reorganize. It named Michael Gries of the restructuring firm Conway Del Genio Gries & Co. as chief restructuring officer and interim chief executive.[30] Bondholders supported Linens 'n Things' request for borrowing power "in order to provide a stabilized soft landing," said Adam Schiff, attorney for an informal committee of institutions that own the bond debt. He said, the bondholders will be keeping a watchful eye on Linens 'n Things as it executes on its plan to prune unprofitable stores and stem losses.[50] Linens 'n Things today released a list of stores it plans to shutter, almost a quarter of which are in California.[24]

The local stores are on North Michigan Avenue in Chicago, and in Palatine, Skokie and Schaumburg. Linens 'n Things, which reported a $242.1 million loss in fiscal 2007, blamed the mortgage crisis for its problems.[30] Mark Collins, attorney for the Clifton, N.J. retailer, said the financing that won interim approval Friday boosts the amount of cash immediately available to Linens 'n Things by $40 million.[50] Linens 'n Things earlier said it had a fiscal 2007 loss of $242.1 million.[12]

In a note to investors on Friday, Deutsche Bank analyst Mike Baker said 50 percent of Bed, Bath & Beyond stores overlap with a Linens 'n Things store within three miles. He estimated the bankruptcy could conceivably add as much as 18 cents per share to Bed, Bath's annual earnings.[13] "The number of stores Linens 'n Things is closing is equivalent to almost 15 percent of Bed, Bath & Beyond's core store base, so there is significant opportunity to gain market share," said William Blair & Co. analyst John C. Murphy.[28] Susan Kenney, spokeswoman for Linens 'n Things, could not pinpoint closing dates for the four Chicago-area stores. "We expect an orderly wind-down of business over the next few months," she said.[44]

Linens 'n Things will close 120 stores nationwide, including 10 in Texas. One of those stores is in Austin, located at Tech Ridge Crossing on I-35 south of Braker Lane.[8] Kopacz noted that some Bed, Bath & Beyond stores were near Linens 'n Things, and Linens 'n Things ultimately lost the battle for many consumers.[30] "The rapid spread of the retail recession caught Apollo and other Wall Street firms by surprise," said Burt P. Flickinger III, managing director of the consumer industry consulting firm Strategic Resource Group. With competition from Bed, Bath & Beyond, department stores and other specialty stores, "Linens 'n Things too often had older locations and smaller stores that didn't have the depth and range of products," he said.[13] The news is not as good for Linens 'n Things' parent, New York private investment firm Apollo Management.[13] In November 2005, an investment group led by New York Apollo Management LP and including Purchase-based National Realty & Development Corp. formed Linens Holding Co. to acquire Linens 'n Things in a deal that closed three months later.[21]

Linens Holding filed for court protection from creditors with 12 units, including Linens 'n Things.[41]

Before Friday's announcement, Linens 'n Things operated 589 stores across the U.S. and Canada.[42] Linens 'n Things operated 589 stores in 47 states and Canada as of Dec. 31, 2007, including stores in Chesterfield, Fenton, Clayton, Town & Country and O'Fallon in Missouri, and Fairview Heights in Illinois.[10] As of Dec. 29, Linens 'n Things operated 589 stores in 47 states and seven Canadian provinces.[6]

Officials at Modesto's store referred a call to store spokesman Richard Tauberman, who said Linens 'n Things was affected by the downturn in the housing market, though that didn't directly correlate to which stores will be closed.[28] A Modesto Linens 'n Things employee said Friday that cards still would be honored at that store. Linens 'n Things shoppers in Modesto were surprised to hear that their supplier of household items and furniture would soon be gone.[28] A runner passes the exterior of the Shops of Grand Avenue's Linens 'n Things store on Friday.[51] In Modesto, a Bed, Bath & Beyond store is less than a mile away to the south from the Linens 'n Things store.[28] Linens 'n Things operates nine stores in Wisconsin, including four in the Milwaukee area.[51]

Like other retailers, Linen 'n Things officials said a crumbling housing market and tightened credit led to a "precipitous decline" in the store's operations.[27] Linens 'n Things is the third major retailer to close within the past few years on that stretch of Sisk Road, north of Vintage Faire Mall and south of Pelandale Avenue.[28] Some of that business will be absorbed by rival home retailers, like Bed, Bath & Beyond, which fills the void left by Linens 'n Things with locations in Schaumburg, Skokie and Kildeer, among other area locations.[44] Linens 'n Things, which sells bedding and home furnishings, opened in Modesto in 2001.[28]

Linens 'n Things had suffered a "precipitous decline" in profitability and liquidity, the company said.[45] Linens 'n Things, which was bought by investment firm Apollo Management in 2006, has been struggling with profitability.[2] Law firms Morgan Lewis Bockius and Richards Layton Finger are advising Linens 'n Things in the bankruptcy case.[38] Linens 'n Things is the largest bankruptcy by assets for a leveraged buyout since last July, according to data from Bankruptcydata.com and Bloomberg.[41]

Linens 'N Things blamed the "impact of the current economic downturn" as the primary issue driving it into Chapter 11.[7] The filing pertains only to Linens 'n Things' operations in the United States.[4] As of December 29, 2007, Linens '''n Things operated 589 stores in 47 states and seven provinces in the U.S. and Canada.[16] Although I haven't been there in a while, I remember shopping at Linens n Things with my mum when I was a kid in the 80's it was a fun store! Then, along came Bed, Bath, and Beyond, which pretty much was a copy of Linens n Things, but better! I guess the competition was too much to handle.[38]

Management filed for bankruptcy due to the impact of the current economic downturn on the Company's operating performance, according to a company statement. The retailer has secured $700 million in debtor-in-possession financing from GE Capital Corp. to continue operating its remaining stores. [52] The company said it has arranged $700 million in financing from General Electric Capital Corp. to continue to stock stores and pay vendors as the company prepares for the back-to-school and holiday selling seasons.[21] The company says it has secured $700 million in debtor-in-possession financing from General Electric Capital Corp., which will ensure merchandise flow as the company prepares for the back-to-school and holiday selling seasons.[3] The retailer has secured $700 million in financing from General Electric Capital Corp. "to ensure healthy merchandise flow," the statement said.[5]

The retailer's chief lender, GE Capital, agreed to keep a $700 million credit line available to the company while Mr. Gries restructures operations. Contrary to earlier published reports, the company did not submit a prepackaged reorganization plan with its filing. It did announce that it would close 120 underperforming stores'the largest number of which are located in California.[37]

Shoppers looking for a bargain can stop by the four closing stores during that time for liquidation sales. While it navigates its way through a Chapter 11 bankruptcy filing, the company plans to keep open approximately 470 stores nationwide, including 22 in Illinois.[44] The home furnishings retailer, based in Clifton, Passiac County, calls the stores 'underperforming.' There will be an 'orderly winding down in the next few months' of those locations, which also include two others in New Jersey, said Richard Tauberman, a company spokesman. He could not give exact dates for the closings. The company said its decision to file for Chapter 11 was due to the slowdown of the economy.[53] Leon Black's Apollo and National Realty & Development Corp. weren't able to manage the Clifton, New Jersey-based company through competition from Bed Bath & Beyond Inc. and department stores while consumers trimmed spending on home furnishings and the U.S. economy moved closer to a recession. "This whole deal has been an utter and complete disaster,'' Anthony Chukumba, an analyst at FTN Midwest Securities Corp. in New York, said today in a telephone interview.[41] Ken Perkins, president of research company RetailMetrics LLC, said the bankruptcy stems from a combination of operating issues and the lagging economy. The Clifton, N.J. -based company said economic factors such as the decline in the housing market, tightening credit markets and a downturn in consumer discretionary spending, particularly in the housewares and home furnishings sector, led to a "precipitous decline" in profitability and liquidity.[49] The closures will displace 60 employees locally and 180 statewide. The process is expected to take several months as the company restructures its debts as part of the Chapter 11 bankruptcy process. The Clifton, N.J. -based company said economic factors such as the decline in the housing market, tightening credit markets and a downturn in consumer discretionary spending, particularly in the housewares and home-furnishings sector, led to a "precipitous decline" in profitability and liquidity.[26]

"I think the weaker players are going to be in difficult shape here." The Clifton, N.J. -based company said economic factors such as the decline in the housing market, tightening credit markets and a downturn in consumer discretionary spending, particularly in the housewares and home furnishings sector, led to a "precipitous decline" in profitability and liquidity.[13]

"The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandizing improvements that we have made over the last two years," Robert J. DiNicola, executive chairman, said in the release. As part of its restructuring plan, 120 underperforming stores will be closed.[22] 'The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years,' CEO Robert DiNicola said in a statement. It didn't help that the Clifton, N.J. -based company was up against market leader Bed Bath & Beyond, as well as discount retailers like Wal-Mart.[37]

Linens Holding Co. said the troubles in the mortgage, housing and credit markets hit the retail industry and "overwhelmed the operating and merchandising improvements that we have made over the past two years."[21]

The decision to file for Chapter 11 protection was driven largely by the impact of the current economic downturn on the company's operating performance, according to a Linens Holdings press release.[9] The filing for Chapter 11 protection, driven largely by the impact of the "economic downturn" on the company's operating performance, pertains only to stores in the United States.[39] Sharper Image Corp. and Lillian Vernon Corp. filed for bankruptcy protection in February. Filing for Chapter 11 under the bankruptcy code frees a company from the threat of creditor lawsuits while it reorganizes its finances.[33] Bankruptcy will eventually make the company a better competitor in the space, Flickinger said. Filing for Chapter 11 under the bankruptcy code frees a company from the threat of creditor lawsuits while it reorganizes its finances.[13]

The nation's current economic downturn is cited as the reason for the filing. By filing for Chapter 11, the company will have tools to restructure its "balance sheet, close under-performing stores, revisit certain agreements and position the company for long-term success."[18] "We are making the strategic decision to use a Chapter 11 filing to proactively address our capital structure and ensure that our stores will remain well stocked while we work through the steps to align the capital structure of the Company with the realities of today's business environment.[29]

" LNT ' s Canadian stores are not part of the Company ' s Chapter 11 process in the U.S., " stated Robert J. DiNicola, Executive Chairman[19] Robert DiNicola, the company's executive chairman, said the decision to close stores was not an easy one.[21] Current CEO Robert DiNicola will become executive chairman. It also said it will close 120 stores, almost a quarter of them in California.[33]

To assist in the company's restructuring, the board of directors has named noted financial restructuring expert and co-founder of Conway Del Genio Gries & Co. Michael Gries as chief restructuring officer and interim CEO. DiNicola, the current chairman and CEO, will become executive chairman.[8] The company's parent, Linens Holding Co., hired restructuring expert Michael Gries of Conway Del Genio Gries & Co. to become the interim chief executive.[31] Linens Holding named Michael Gries, a financial restructuring expert and co-founder of Conway Del Genio Gries & Co., as chief restructuring officer and interim CEO.[40]

There were also reports that Linens has received interim Court permission for the financing. Linens said its board elected Michael Gries as its Chief Restructuring Officer and Interim Chief Executive Officer and David Coder as its President and Chief Operating Officer.[35] Linens' board elected Michael Gries, founder of turnaround firm Conway Del Genio Gries & Co., chief restructuring officer and interim chief executive officer.[52]

The company said Michael Gries had been appointed chief restructuring officer and interim chief executive.[1] The statement said DiNicola will take the title of executive chairman; while financial restructuring consultant, Michael Gries, will take over as interim chief executive officer and chief restructuring officer.[5] The company's chairman and chief executive, Robert DiNicola, was named executive chairman.[10]

Robert DiNicola, the company's chief executive, said in a statement that the deteriorating housing and credits markets "overwhelmed the operating and merchandising improvements that we have made over the past two years."[30]

The company has asked the bankruptcy court for permission to honor gift cards and store credits. [51] Good question, JustAGirl. The court ruling will apply to all Linens stores, whether they are closing or not. I expect that the court will allow Linens to continue to honor their gift cards. It's good to know that you can lose the value of your gift cards if a company goes out of business or files for bankruptcy. This would be a good time for all of us to check our wallets and dresser drawers and think about using gift cards and gift certificates that we've forgotten about.[36]

Sontchi also gave the company approval to continue paying employees. He said the company must return for final approval of an employee bonus program. Noteholders are concerned that the $700 million bankruptcy loan's payoff would come ahead of the $650 million they are owed, attorney Adam L. Shiff told Sontchi. The noteholders didn't oppose the interim approval, but should Linens financial position weaken too much in the next few weeks, they may fight final approval, Shiff said.[15] Linens said Friday that it has secured $700 million in financing and that vendors have sent new merchandise in recent weeks.[51]

Linens Holding Co., which had 2007 sales of $2.8 billion and operates 589 stores in the United States and Canada, listed debts of $1.42 billion and assets of $1.74 billion.[21] At the end of 2007, the company had sales of $2.8 billion and operated 589 stores in 47 states and in seven provinces in Canada.[51] The company, which reported sales of about $2.8 billion in 2007, will operate the chain's 469 remaining stores.[11]

The retailer's Canadian stores, which are among the strongest performers in the chain, are not included in the filing and there are no plans for a similar filing in Canada, the company said.[4] The filing pertains only to the company's operations in the U.S. The company's Canadian stores, which are among the strongest performers in the chain, are not included.[22]

Prior to the bankruptcy filing the company operated 589 stores in 47 states and seven provinces across the United States and Canada.[3] The bankruptcy filing does not include the company's Canadian stores, which are among the strongest performing.[11]

"The business will be smaller but it will be more stable." That downsizing will create more vacancies at malls — but it could also provide some mall operators the opportunity to adjust to the current economy, real estate experts said. "Although the magnitude of this bankruptcy filing cannot be disputed, recent bankruptcy filings and store closings create new opportunities for other retailers to acquire space in the nation's shopping malls," said Dan Ansell, a partner at Greenberg Traurig LLP and chairman of its real estate operations division. "It also creates opportunities for shopping centers to redefine their tenant mix and thus adapt to current economic trends."[13] The bankruptcy filing was driven "largely by the impact of the current economic downturn on the company's operating performance," a news release stated.[22] Prior to Friday's bankruptcy filing, banks led by GE Capital had given the company until May 13 to deal with the consequences of a missed payment on the bond debt.[50]

The housewares retailer filed for Chapter 11 protection weighed down with more than $1 billion in debt, including $650 million in bond debt as well as the pre- Chapter 11 bank loans.[50] Analyst Steven Keith Platt also attributed the losses to the heavy debt load that private investment firm Apollo Management took on in 2006 when it purchased the company for $1.3 billion. "With the recession, the housing market, and the excessive debt load of the company, all these negative equals a recipe for disaster," Platt said.[30] The company, taken private two years ago by Apollo Management, lists $1.42 billion in debt and $1.74 billion in assets.[23]

The Clifton, N.J. -based company was acquired by investment firm Apollo Management in 2006. It is the latest retailer to be hit by the weakening retail environment as consumers cut back. [48]

Eight other Texas locations will also be closed by Clifton, N.J. -based Linens Holding Co., the parent company of the retail chain.[11] Linens Holding Co., the New Jersey-based home goods chain, filed for bankruptcy Friday in Delaware.[51] New Jersey-based Linens Holding Co. plans to shut underperforming stores in Riverside, Corona, Fontana, Montclair and Chino. Its stores in Temecula, Mira Loma and Rancho Mirage will remain open.[17]

The company's financial restructuring plans include closing 120 underperforming stores.[16] As part of the restructuring, the company will also be closing its 120 underperforming stores. This may also result in loss of thousand of jobs.[35]

The stores are part of 120 underperforming stores nationally being closed, the Clifton, N.J. -based company said. In Michigan, the company is closing nine of its 13 stores.[43]

Company spokesman Rich Tauberman said the retailer did an extensive review of sales and expenses before choosing the 120 stores to close. He said there will be an "orderly closing process over the next several months," but no timetables have been announced for specific locations.[17] Collins also said that the company hopes in June to start liquidating the 120 underperforming stores it is planning to close. The company currently employs about 15,900 workers in its 551 U.S. locations.[15]

The firm, which owns 589 stores in the U.S. and Canada, plans to close 120 stores. Its Canadian stores, however, are performing well and are not part of the bankruptcy protection.[34] The company does plan to close 120 stores across the U-S, about a fifth of the total number of locations.[47] The company will close 120 underperforming stores across the country, but the others will continue to operate.[51] The home furnishings specialty retailer said it will close 120 underperforming stores but will otherwise remain open for business.[40]

Business - Linen 'n Things to close stores - sacbee.com Some features on this site require that JavaScript be turned on. [27] "There will be an orderly wind-down of stores in the next few months," said Linen 'n Things spokesman Rich Tauberman.[27]

The chain also had to compete against the likes of Crate & Barrel and Macy's. "Because the companies are so similar, it's incredible to think one would tank," said Neil Stern, market analyst for McMillan/Doolittle LLP in Chicago. "It came down to execution. Bed Bath & Beyond had better merchandise, planning and promotions." Stern said Linen 'n Things should survive, coming out of this ordeal a smaller, more focused company. "In the interim, they need to figure out a better way to compete in today's market," he said.[30] "There is a reason for Linens n' Things,'' Gilbert Harrison, chairman and CEO of Financo Inc., which is advising the company, said in a telephone interview. "It had gone through some turbulent times prior to its privatization. While there is some discord between the parties, as there usually is, they are working to resolve any problems.''[41] Linens 'n Things' pending departure from Centerpointe Mall isn't upsetting to the mall's owners. "We are looking at this as an opportunity to bring in a stronger tenant to the space," said Chris Brochert, a partner of Lormax-Stern Development Inc. of West Bloomfield, which owns the Kentwood mall and others in the state.[26] Customers who visited the Schaumburg and Palatine locations may gravitate towards the Linens 'n Things in Hoffman Estates.[44] Linens 'n Things blamed the current bad economy, but signs of trouble began when it was taken private by three investors in 2006.[31] Linens 'n Things, which is based in Clifton, N.J., sells towels, comforters, tableware, furniture, appliances and other items and competes with Bed Bath & Beyond.[21]

Linens ' n Things, with 2007 sales of approximately $2.8 billion, is one of the leading, national large format retailers of home textiles, housewares and home accessories.[19]

Sales of the stores that will be closed. Size of the debtor-in-possession financing Linens received from General Electric Capital Corp., which had been its lead lender before the filing as well.[32] The company also has lined up $700 million in debtor in possession financing from General Electric Capital.[23] The company has secured a $700 million facility from GE Capital, which will be primarily used to keep merchandise flowing.[7]

The Company has been working closely with key vendors, who have been supporting the Company with new merchandise in recent weeks. The DIP facility will allow the Company to normalize relations with the larger vendor community and the Company believes this will provide adequate working capital to meet its ongoing obligations during the restructuring.[19] We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Such factors include, without limitation: general economic conditions; changes in the retailing environment and consumer spending habits; inclement weather and natural disasters; competition from existing and potential competitors; the amount of merchandise markdowns; loss or retirement of key members of management; increases in the costs of borrowings and unavailability of additional debt or equity capital; impact of our substantial indebtedness on our operating income and our ability to grow; the cost of labor; labor disputes; increased healthcare benefit costs; and other costs and expenses. This list of factors is not intended to be exhaustive.[19] Platt expects the trend of store closing to continue into the next year. "The overextended consumer will not rescue retailers," he said. "There's way too much debt, increasing food and fuel costs, and customers losing their jobs." Retail stores nationwide have been closing their doors at an all-time high, according to a report published by ICSC Research.[30] For the first quarter of the year, 28 retail chains have announced 2,122 store closings, and three chains have filed for Chapter 11 reorganizations, the report stated.[30] The apparel segment of the retail industry accounted for the largest number of store closing announcements, with the home entertainment segment in second place. ICSC estimates the number of store closings could reach 6,500 this year.[30]

The Linens closing raises questions about what might replace the store. Linens leases around 30,000 square feet, making it among the largest stores at the Grand Avenue, which has seen an increase in its vacancy rate in recent years.[51]

Since 2000, city taxpayers have invested around $26.2 million in the Grand Avenue and its adjacent buildings, including some $5 million in improvements for space at the Plankinton Arcade at the east end of the mall used by Linens and a T.J. Maxx store.[51] Linens Holding Co. lost $242 million last year while Bed, Bath and Beyond Inc. made $562.8 million in profits.[26]

Home Depot said it will record a charge of approximately $400 million related to capitalized development costs and ongoing obligations associated with the decision not to go forward with the new stores.[29] The home accessories firm has received $700m of additional financing to help it continue operations and buy new merchandise.[45]

The filing was made in U.S. Bankruptcy Court in Delaware under Chapter 11 of the bankruptcy code, which provides protection from creditors while a debtor reorganizes. [21] 'The decision to file for Chapter 11 protection was driven largely by the impact of the current economic downturn on the company's operating performance,' it says in a filing Friday with the Securities and Exchange Commission.[3] Filing for Chapter 11 in the United States provides the Company with the tools to restructure the balance sheet, revisit certain agreements and position the Company for long term success.[19]

The decision to file for Chapter 11 protection was driven largely by the level of leverage on the Company, which makes efficient operations during the U.S. economic downturn extremely challenging.[19] Company officials said the decision to file for Chapter 11 was largely driven by the current downturn in the economy.[25]

Ken Perkins, president of research company RetailMetrics LLC, said the bankruptcy stems from a combination of operating issues and the lagging economy. "There's clearly a shakeout going on in the retail industry, which will continue through the rest of the year," he said.[46] The store, which opened in 2004 as part of a renovation of the downtown mall, is one of three stores being closed in Wisconsin after the company filed for bankruptcy.[51] Retailers Sharper Image Corp., Lillian Vernon Corp., Bombay Co. and Levitz Furniture Inc. have also filed for bankruptcy protection as credit becomes harder to obtain and consumers grappling with higher grocery and gasoline costs cut back on non-necessary purchases.[41] Under bankruptcy law, stores do not have to honor gift cards after the store files for bankruptcy protection.[28]

As of December29, 2007, Linens ' n Things operated 589 stores in 47 states and seven provinces across the United States and Canada. [19] More information about Linens ' n Things can be found online at www.lnt.com. The Company believes there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain, and we may not realize our expectations and our beliefs may not prove correct.[19]

BBC said that Linens cited the housing market slump and credit squeeze in filing the bankruptcy.[34] The number of stores Linens will have left. This includes 40 stores in Canada that were not part of the filing. The number of full and part-time workers who will lose their jobs.[32] The closures will result in the loss of about 2,500 jobs. "The decision to close stores was difficult but necessary to improve LNT's financial position and place the company on a firmer financial footing as we move forward," he said in a statement released by the company. "We will be able to realize important cost savings and operational efficiencies as a result of this process, allowing us to serve all our constituencies more effectively."[21] The company expects to close the underperforming stores within a few months, spokeswoman Susan Kenney said. Each store has about 20 employees, she said.[6] The New Jersey store closings, which will involve a total of 75 employees, are expected to take place over the next several months, according to a company spokesman.[4] Nearly a quarter of the closed stores will be in California, but the Clifton-based company will also shut three in New Jersey.[12]

NRDC is the parent company of the Lord & Taylor department-store chain, which it acquired from Federated Department Stores in 2006. The company last month closed on its acquisition of Fortunoff, a seller of jewelry and home goods.[21] The company's Canadian stores, which are among the strongest performers in the chain, are not affected.[16]

The company will conduct closing sales to get rid of merchandise at the stores.[51] The company said the stores not on the closure list "expect to be well stocked with merchandise."[21]

"There will be an orderly wind-down over the next several months," said Rich Tauberman, a spokesman for the company. In the meantime, he said, "it will be business as usual." The bridal registry will still be available, and gift cards and store credits will be honored, he said. "There likely will be a going-out-of-business sale," he said.[22] Company executives blamed the store's lagging sales on the recent economic slowdown.[11]

Susan Kenny, a spokeswoman for the company, said closing dates for the individual stores have not been set yet. "It'll be an orderly wind down of business over the next few months," she said.[21] Michigan came in third after California and Texas for the number of store closings, which total 120 nationwide. "It was just more of what stores were not performing compared to other stores, and Michigan took a bigger hit than other states," said Rich Tauberman, the retailer's spokesman. The retailer's closing of its Michigan stores has more to do with the crowded home-furnishings market than the state's well-known economic struggles, suggested Fred Marx, a retail marketing consultant in Farmington Hills.[26] The closest store is in Canyon Springs retail center in Riverside. Its Canadian stores, among the strongest performers in the chain, are not included in the filing.[39]

The Canadian stores are not part of the bankruptcy restructuring, officials said.[27] "One challenge that will exist is how much of the $650 million due to noteholders will be converted to equity,'' Kenneth Simon, managing director at restructuring advisory firm Loughlin Meghji & Co., said in a telephone interview. "If Apollo owns some of those notes, that may give them the opportunity to retain an ownership interest in the reorganized entity.''[41] Brian Riley, senior analyst at research firm The TowerGroup, estimates the filing will freeze about $42 million in consumer gift cards, affecting about 400,000 customers.[13]

"I don't want you to hold money hostage," Sontchi warned General Electric Capital Corp., the lender on the bankruptcy loans, which will be used to pay off $430 million in existing bank loans.[50] Linens posted a fourth-quarter net loss of $62 million and a $242.1-million plunge for all of 2007.[52] Linens was taken private in 2006 after a $1.3-billion buyout by Apollo Management and NRDC Real Estate Advisors.[52] The chain, which private-equity firm Apollo Management LP bought for $1.3 billion in February 2006, will continue to operate without interruption. It also expects to be well stocked ahead.[20]

Linens sold $146 in merchandise per square foot in 2007, down from $166 per square foot in 2004, according to a Wall Street Journal story last month. [31] According to Dow Jones, banks led by GE Capital gave Linens until May 13 to pay bond debt or face an increase of two percent interest and the discontinuation cash infusion to the retailer.[34] While consumers may think of the gift cards as cash, the bankruptcy court considers gift cards as debt, and therefore holders are not necessarily going to get paid.[13] The corporate bankruptcies reflect the trend in U.S. consumer bankruptcy filings, which increased 47.7 percent nationwide in April from the same month a year ago, according to the American Bankruptcy Institute, citing data from the National Bankruptcy Research Center.[40] Bankruptcy filings in retailing industry in the U.S. are increasing due to economic downturn, and operational issues.[35]

The bankruptcy filing is expected to help rival home-furnishings retailer Bed, Bath & Beyond Inc.[28]

CompUSA closed in Vintage Commons last year. Pet retailer PetSmart recently disclosed plans to open a store in the former CompUSA space this year. [28] Landlords for shopping centers & malls all over the nation, but in California, especially, have been raising rents beyond the point of the retailers being able to function well. It's been somewhat absorbed since 9-11 due to easy money, but no more, the credit tap has dried up and endless store expansion is over, over, over.[32] Without the approval of the court, customers would not be able to redeem gift cards or store credits.[51]

The court's approval will make $40 million immediately available to the retailer, according to Dow Jones.[34]

With the U.S. housing market weakening and consumers holding tight to their wallets, retailers have struggled to stay afloat.[2] "I think the weaker players are going to be in difficult shape." Officials of the Clifton, N.J. -based LNT said economic factors, such as the decline in the housing market, tightening credit markets and a downturn in consumer discretionary spending ''' particularly in housewares and home furnishings ''' led to the "precipitous decline" in profitability and liquidity.[46] Company spokeswoman Susan Kenney said the lagging economy, credit crunch and sluggish home mortgage market led the move.[14] Wrinkle in company's operating agreement with parent GMAC is key to credit raters' decisions.[37]

"The resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years," Executive Chairman Robert DiNicola said.[5] The buyout firm had installed Robert DiNicola, a former executive chairman of GNC Corp. and ex-chairman and chief of Zale Corp., as CEO. DiNicola failed to lure customers with a "Best Bets'' program that emphasized 100 top-selling items.[41]

David Coder, the executive vice president of store operations, has been appointed president and chief operating officer. [4]

Atlanta-based Home Depot announced Thursday it will close 15 U.S. stores, including the store at 7401 W. Good Hope Road in Milwaukee.[29] Stores in Schaumburg, Palatine, Skokie and the Chicago Loop were listed among 120 "under-performing" locations nationwide that will close by an unspecified date.[44] Aside from the Mays Landing store at the Consumer Square shopping mall, there are 22 other locations in New Jersey and a total 589 stores nationwide.[53]

Michael Gries, of New York City-based financial advisory firm Conway Del Genio Gries & Co. was named chief restructuring officer and interim CEO.[10] The company has been working closely with key vendors, who have been supporting the company with new merchandise in recent weeks, said the Web site. The Associated Press contributed to this story.[46]

Rich Tauberman, a spokesman with Clifton, N.J. -based Linens Holdings, said the approximately 20 employees at the Broomfield location were notified today. [9]

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1. Linens 'n Things files for bankruptcy | Reuters
2. Linens 'N Things: On The Outs - Forbes.com
3. Central Valley Business Times
4. Linens 'n Things Files Chapter 11 Bankruptcy Protection
5. Linens 'n Things files for Chapter 11 - UPI.com
6. Linens 'n Things files bankruptcy, will fold KC-area stores - Kansas City Business Journal:
7. Linens 'N Things Files Bankruptcy, Closing 120 Stores - CoStar Group
8. Linens 'n Things files bankruptcy, closing Austin store - Austin Business Journal:
9. Boulder County Business Report - Online!
10. Linens 'n Things files for bankruptcy - St. Louis Business Journal:
11. One Houston store to close as Linens 'n Things files for bankruptcy - Houston Business Journal:
12. Linens 'n Things files for Chapter 11 - New Jersey Local & Small Business News ' Economics & Finance News Articles - NJ.com
13. The Associated Press: Linens 'n Things files for bankruptcy protection
14. Linens 'n Things won't close Fairview Heights store
15. Bloomberg.com: Worldwide
16. Linen 'n Things to close 120 stores as part of Chap. 11 restructuring - DMNews
17. Linens 'n Things to close five Inland stores | Business | PE.com | Southern California News | News for Inland Southern California
18. Neighbor Newspapers - BANKRUPTCY - Local Linen 'n Things NOT among 120 under-performing stores to close
19. Linens 'n Things Canadian Stores Unaffected by Chapter 11 Filing in United States
20. Free Preview - WSJ.com
21. Linens 'n Things files for bankruptcy, closing stores | lohud.com | The Journal News
22. News: Linens N Things to close | linens, close, things : YumaSun
23. Linens n' Things files for bankruptcy; closes two Twin Cities stores - Minneapolis / St. Paul Business Journal:
24. KRDO.com Colorado Springs, Pueblo - Weather, News, Sports - Linens 'n Things to close 4 Colorado stores, 120 overall
25. GoErie.com: Linens 'n Things at Millcreek Mall Pavillion to close
26. Linens 'n Things bags it, files bankruptcy - mlive.com
27. Business - Linen 'n Things to close stores - sacbee.com
28. The Modesto Bee | In A New Chapter -- 11
29. Linens 'n Things will file for bankruptcy, close Wisconsin stores - Small Business Times
30. Linens chain to fold 120 stores -- chicagotribune.com
31. Linens 'n Things files for bankruptcy protection | ajc.com
32. Deal Journal - WSJ.com : By the Numbers: Linens 'n Things' Bankruptcy Filing
33. The Associated Press: Linens 'n Things files for bankruptcy protection
34. Linens 'N Things Interim Bankruptcy Protection Approved By U.S. Court | May 3, 2008 | AHN
35. RTTNews - Breaking News, financial breaking News, Positive EPS Surprises, Stock research .
36. Linens 'n Things gift cards - Doris Hajewski: Shop Talk
37. Linens 'n Things taken to the cleaners - Financial Week
38. Linens n Things Lands in Chapter 11 - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
39. Linens 'n Things to keep valley store open | MyDesert.com | The Desert Sun
40. Cupboard is Bare at Linens 'n Things - Restructuring - CFO.com
41. Bloomberg.com: U.S.
42. WOODTV.com & WOOD TV8: Grand Rapids news, weather, sports and video | Linens 'n Things to close all 3 Grand Rapids stores
43. Linens 'n Things to close 9 Michigan stores -
44.
45. BBC NEWS | Business | Bankruptcy for US linen retailer
46. Linens 'n Things bankruptcy won't close local store : Local : Evansville Courier Press
47. Regina Store Not Affected By Linens-N-Things Bankruptcy | News Talk 650
48. The Associated Press: Linens 'n Things files for bankruptcy protection
49. Linens 'n Things files for bankruptcy protection
50. Linens n Things Gets Interim Court OK On $700 Million Ch 11 Loan
51. JS Online: Linens to close shop downtown
52. Linens Files Chap. 11; Closing 120 Stores
53. Hamilton Twp. Linens 'n Things store is casualty of company bankruptcy

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Linens 'N Things Gets Bankruptcy-Loan Approval From Judge

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