X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CLIFTON, NJ-In a statement released late Tuesday, home furnishing retailer Linens ‘n Things Inc. said to complete the the $1.3 billion, or $28-per-share, buyout from Apollo Management, the company’s comp-store sales for the fourth quarter needs to report better than negative 6%. Further, the company’s EBITDA for the fiscal year ended Dec. 31 needs to post at or exceed $140 million.

Despite those conditions, the company reassured investors, stating that a proxy filed Tuesday with the Securities and Exchange Commission reflected Linens’ belief that it would satisfy the requirements. In the filing, CEO and chairman Norman Axelrod encouraged shareholders to vote in favor of the merger.

“Your board of directors has unanimously approved and declared the merger and the merger agreement advisable, and has declared that the merger is fair to and in the best interests of Linens ‘n Things and its stockholders,” Axelrod writes.

During its latest reported quarter, which ended Oct.1, Linens’ year-over-year same-store sales fell 10.1%. Total net sales dropped 3.8%, to $629.3 million and net income fell to just over $1 million, from $17.2 million in the same year-ago period.

At press time, shares of Linens ‘n Things were up 10.58% trading at $26.44.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.