Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

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

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. The company’s nearly 40 stores in Canada are not part of the filing.

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 last year.

Linens’ board elected Michael Gries, founder of turnaround firm Conway Del Genio Gries & Co., chief restructuring officer and interim chief executive officer. Chairman and CEO Robert DiNicola moved to the position of executive chairman.

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

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.