The Clifton, N.J.-based retailer, which earlier this week delayed interest
payments on its senior secured notes as it negotiated with creditors, may be
close to selling off its chain of 40 Canadian outlets, according to a New York Post
report Thursday.
The Apollo Management LP portfolio company, which the Post
reported several days ago was near a prepackaged bankruptcy filing, has retained a
restructuring firm and could sell the outlets in a move to shore up some cash.
The paper called the stores "highly profitable," as Linens 'n Things is largely
free from competition up north from its main rival Bed Bath & Beyond Inc., which
has only one Canadian outlet. Among the interested buyers may be BB&B
itself, and the report raises the question of whether the company could be opting to
liquidate altogether, rather than reorganize. - Carolyn Murphy
See NYPost storySee Dealscape: Linens 'n Things hires turnaround firmSee Dealscape: Is Linens 'n Things headed for bankruptcy?
