Linens ‘n Things Liquidating 120 Stores

June 1, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on June 2008 Linens ‘N Things, which declared Chapter 11 bankruptcy a month ago, began liquidation sales in 120 of its 500 stores Saturday, the Clifton. N.J.-based company announced Friday.

More than $275 million in inventory will be liquidated in sales conducted by SB Capital Group and Tiger Capital Group. Stephen Goldberger, principal of Tiger Capital Group said, “These stores are full of desirable products from many popular brand names. ... Shoppers coming into these stores will find unprecedented savings on decorative and functional items for every room in the home. This should be a great event for the many communities where these stores are located.”

The $2.8 billion chain sells a broad variety of home furnishings. Last week, the U.S. Bankruptcy Court in Delaware approved a Linens ‘n Things request to borrow $700 million as it reorganizes its heavy debt load. Analysts said a downturn in the housing market had contributed to Linens ‘n Things’ struggles, and California led the list of unprofitable locations the company is shutting.

The company reportedly lost $242 million. News of its struggles became public in April when the company announced that it was unable to make a scheduled $16 million interest payment on its debt load. Its reorganization has strengthened the position of larger rival Bed, Bath & Beyond, which has more than 800 stores.