Linens 'n Things

Linens 'n Things, Inc. is an online retailer and former department store specializing in home textiles, housewares, and decorative home accessories.[2] Based in Clifton, New Jersey, the chain operated 571 stores in 47 U.S. states and six Canadian provinces, and had 7,300 employees as of December 2006.[1] The company's business strategy was "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."[3]

Burdened with debt after private equity buyouts, the company announced it would shutter all remaining stores in October 2008.[4][5] It was relaunched as an online-only retailer in February 2009 at its former domain name, LNT.com, selling similar products as its brick-and-mortar stores had. As an online retailer, it originally ceased operating in 2018.

In July 2020, the rights to Linens 'n Things were acquired by holding company Retail Ecommerce Ventures (REV).

Acquisition and trouble

The company was acquired in February 2006 by Apollo Global Management, a private equity limited partnership, for US$1.3 billion.[1] As a part of the transition from a public company to the private-owned business, the position of CEO went from Norman Axelrod to Robert (Bob) DiNicola; alongside of him were several executives such as F. David Coder who is president and Omer Fancy who is the executive Vice President of Marketing.

According to Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarterly period ended September 29, 2007, Linens Holding Co. and subsidiaries (including Linens 'n Things, Inc. acquired in February 2006 for cash of approximately $1.3 billion) reported net sales of $666.8 million, versus $658.2 million in the year-earlier period. The increase in net sales was primarily due to the opening of new stores since September 30, 2006 offset by the impact of a decline in comparable store sales. The decline in comparable store sales was primarily due to a decline in customer transactions partially offset by an increase in average transaction value.

The operating loss (after a charge of $16.8 million for impairment of property and equipment in the more recent quarter) was $56.6 million against a loss of $17.9 million a year ago. After net interest expense and other income & expense, the loss before income taxes was $79.2 million compared to a loss of $41.7 million. After provision/benefit for income taxes, Linens Holdings reported a net loss of $79.9 million versus a net loss of $27.4 million.

On April 17, 2008, the New York Post reported that the company was seeking to sell its highly profitable Canadian Division, but no one at Linens 'n Things would confirm nor deny this, saying only that an adviser had been hired to explore strategic alternatives.[10] Ultimately the Canadian Linens 'n Things stores met the same fate as their U.S. counterparts.

Bankruptcy and liquidation

On May 2, 2008, Linens 'n Things filed for Chapter 11 bankruptcy and closed 120 stores.[11][12] In August 2008, Linens 'n Things devised a plan to emerge from bankruptcy early in 2009. Under the plan, the retailer intended to reverse many of the strategies introduced after the company was bought by Apollo. Chief among those tactics was a shift to splashy clearance sales and product promotions. Revised management wished to return Linens 'n Things to an "everyday, low price" model it had pursued during its earlier years as a public company. It also wished to improve the quality of its merchandise and to keep shelves stocked in timely fashion, the paper said.[13]

On October 7, 2008, Bloomberg News reported that Linens 'n Things asked the Bankruptcy Court for permission to auction the remaining 371 stores and hold store closing sales.[14] On October 14, the company announced its official sale to a group of asset recovery specialists. The company began going-out-of-business sales at its remaining stores in both the United States and Canada and on the chain's website, LNT.com, on October 17.

type	Private
foundation	August 1970 (as retail stores)
defunct	2008 (stores only)
fate	Filed for bankruptcy
parent	Omni Retail Enterprises
industry	Retail
products	Home Furnishings
revenue	$2.70 billion in 2005‡R1R‡
website	linensnthings.com

Founding

Acquisition and trouble

Bankruptcy and liquidation

External links

References

Online revival