By JAMES COVERT
Last updated: 4:26 pm
October 8, 2008
Posted: 4:34 am
October 8, 2008
Linens 'n Things, conceding defeat in a multiyear turnaround effort, asked a Delaware judge for permission to quickly liquidate its stores.
Confirming exclusive reports by The Post - including a Sept. 17 story that said Linens 'n Things may take liquidation bids as soon as mid-October - the struggling housewares chain proposed to auction its stores on Oct. 14 and begin going-out-of-business sales two days later.
The Clifton, NJ retailer, taken private for $1.3 billion in 2006 by billionaire Leon Black's Apollo Management, had told employees in recent weeks that it still might find a buyer to save it from liquidation. Immediately following The Post's Sept. 17 report, Chief Restructuring Officer Michael Gries in an internal memo complained of "rumors and misinformation in the media."
Yesterday, however, Gries admitted to Delaware Bankruptcy Judge Christopher Sontchi that Linens 'n Things won't survive the holidays. He said the retailer aims to start liquidating as soon as possible.
Linens 'n Things' hopes faded last month after Cerberus Capital Management abandoned a plan to downsize the chain.
Lord & Taylor owner NRDC and Toronto private-equity firm Hilco Consumer Capital are circling Linens 'n Things' profitable chain of 37 stores in Canada. Yesterday, Gries told the judge two suitors are still deciding whether to make bids for parts of the chain.
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