Quick Hits: Spring Cleaning at Linens 'n Things
Brief scrutiny of today's headlines.
Although home goods retailer Linens 'n Things is folding up the last of its towels and bedding supplies, and emptying sales racks at 120 of its underperforming stores, an interim $700 million loan will allow the company to keep operating to pay off older debts.
Bloomberg reports that Linens 'n Things and parent company Linens Holding Company filed for Chapter 11 bankruptcy protection on Friday, listing debt of $1.42 billion and assets of $1.74 billion. Should the company, taken private by Apollo Management LP in 2006, win final approval later this month, the money will be used mainly to pay off a group of ten lenders owed at least $430 million, including General Electric (GE), hedge fund operator Silver Point Finance LLC, and JPMorgan (JPM).
In June, the company hopes to start liquidating the 120 underperforming stores ahead of shutting them down. The company currently employs about 15,900 workers in 551 U.S. locations.
Given the weakened economy and broad consumer cutbacks in spending, is anyone surprised?
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter