While the mainstream press continues to characterize PE firms as quick-flip artists, it seems one household name, Linens n' Things, will be anything but a quick-flip for Apollo Management, which bought the home decor retailer for $1.3 billion in 2005. Efforts to improve the bottom line clearly aren't going so well as LNT's Q1 results show. Because the retailer has publicly traded debt outstanding, it must continue to report its earnings with the SEC. LNT reported a net loss of $58.2 million, which compares to a net loss of $65.5 million in the same period a year ago. Revenues dipped 4% to $571.6 million as same-store sales fell 5.2%. The trouble Apollo is having with LNT may give PE firms pause before diving into other retail plays, especially home decor retailers like Bombay Co., The Container Store, and Domain Home Furnishings, which are on the auction block. — Matthew Wurtzel
See Linens n' Things 10-Q from SEC's Edgar
See Linens n' Things press release
See related story about LBO from TheDeal.com
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