Linens ‘n Things files voluntary petition under Chapter 11; lists 120 U.S. store closings

Linens ‘n Things announced May 2^nd  it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company also announced that as part of its financial restructuring it plans to close 120 underperforming stores (see list below).  The national home furnishings chain will continue to operate its remaining stores without interruption during the reorganization. The filing pertains only to LNT’s operations in the U.S. The company’s Canadian stores, which are among the strongest performers in the chain, are not included in the filing and there are no plans for a similar filing in Canada.
 

Linens ‘n Things Store Closing List

According to a company press release, LNT has requested immediate authorization and expects approval from the Court to continue paying employee salaries and benefits as well as to honor gift cards and store credits as normal. LNT has secured $700 million in debtor-in-possession (DIP) financing from General Electric Capital Corp. to ensure healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons. The company has been working closely with key vendors, who have been supporting the Company with new merchandise in recent weeks. To assist in its financial restructuring, LNT’s Board of Directors has named Michael F. Gries, a noted financial restructuring expert and Co-Founder of Conway Del Genio Gries & Co., as chief restructuring officer and interim CEO.

Linens ‘n Things, with 2007 sales of approximately $2.8 billion, is one of the leading, national large format retailers of home textiles, housewares and home accessories. As of December 29, 2007, Linens ‘n Things operated 589 stores in 47 states and seven provinces across the United States and Canada. More information can be found online at www.lnt.com/corp/index.jsp?page=notices under the Investor Relations subheading.