Curtains for Linens 'n Things?

[marmar]

from the NY Post:



IT'S CURTAINS FOR LINENS
CERBERUS PULLOUT MAY FORCE RETAILER TO LIQUIDATE


Posted: 3:55 am
September 17, 2008

Having missed a last-ditch chance to sell itself, Linens 'n Things may be forced to liquidate its business during the holidays, sources told The Post.

Cerberus Capital Management last week abandoned a prospective plan to buy the struggling home-furnishings chain, which filed Chapter 11 in May after being taken private for $1.3 billion in 2005 by billionaire Leon Black's Apollo Capital Management, sources said.

In turn, Linens 'n Things may take liquidation bids as soon as mid-October, paving the way for chainwide going-out-of-business clearances in November and December, sources said.

For six weeks, buyout giant Cerberus had been weighing a plan to scoop up the chain at a rock-bottom price, downsize it and return it to profitability, sources said.

Last month, Linens 'n Things devised its own plan to emerge from bankruptcy early next year. That plan is not seen as viable now.

But with losses getting steeper and sales plunging, Cerberus became daunted by the size of the investment needed to turn the business around, sources said.

The Clifton, NJ-based retailer's same-store sales, or sales at stores open at least a year, have fallen 32 percent month to date, sources said. That's far worse than the 25 percent drop seen in August, as well as an internal plan that has sought to limit declines to the mid-teen range this fall, sources said. ......(more)

The complete piece is at: http://www.nypost.com/seven/09172008/business/its_curtains_for_linens_129486.htm

[LiberalHeart]

1. The one near me started its going out of business sale many weeks ago.

[ChairmanAgnostic]

2. I dated someone who loved shopping there, and wow, what an eye popping

experience that was - shopping, I mean.

I could not believe that people actually wanted to buy that crap. Tufted toiletpaper covers? silk trimmed crap for display only?

worst of all, it was pretty poor quality.

no big loss. There will be others. this financial storm has just begun to blow.

[Blue Diadem]

3. The closest one to us has already closed. It had only been open a few years.

I suspect they won't be the only retailer going down the tubes.