The state impacted the most by the move is California, with 27units closing. Texas follows with 10, and Michigan will lose nineLinens.

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Management filed for bankruptcy due to "the impact of thecurrent economic downturn on the Company's operating performance,"according to a company statement. The retailer has secured $700million in debtor-in-possession financing from GE Capital Corp. tocontinue operating its remaining stores. The company's nearly 40stores in Canada are not part of the filing.

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Linens posted a fourth-quarter net loss of $62 million and a$242.1-million plunge for all of 2007. Same-store sales fell 1%year over year during the fourth quarter and 3.4% over all of lastyear.

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Linens' board elected Michael Gries, founder of turnaround firmConway Del Genio Gries & Co., chief restructuring officer andinterim chief executive officer. Chairman and CEO Robert DiNicolamoved to the position of executive chairman.

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Linens was taken private in 2006 after a $1.3-billion buyout byApollo Management and NRDC Real Estate Advisors.

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