Privately held NRDC Real Estate Advisors sealed the deal to acquire Linens 'n Things. The company paid Linens 'n Things stockholders $1.3 billion and the principal equity sponsors include affiliates of NRDC and Apollo Management, a private New York investment firm.

NRDC is an affiliate of National Realty & Development Corp., owners and developers of more than 14 million square feet of shopping centers in the United States. Linens 'n Things operates 542 stores in 47 states and six provinces in Canada.

NRDC attributes Linens' weak 2005 financial performance to less effective merchandising and marketing initiatives that were implemented in the second half of 2004 and in 2005. However, the firm said the "underlying fundamentals of Linens 'n Things remain strong, including strong brand name recognition, attractive real estate locations and the fundamentals of the industry are very favorable. As a result, Linens 'n Things has the opportunity to significantly improve its financial performance in the near term."

Spearheading the company's turnaround is new chairman and CEO, Robert J. DiNicola. Previously, DiNicola was executive chairman of General Nutrition Center and chairman and CEO of Zale Corp.

"While we were disappointed when we were outbid for both Toys 'R Us and Pathmark, we believe that Linens 'n Things offers us a growth opportunity for both the United States and Canada," said Richard A. Baker, president of NRDC.