Linens 'n Things finally threw in the towel and filed for Chapter 11 bankruptcy on Friday. The Clifton, N.J.-based home retailer filed its petition for bankruptcy in Delaware Court (download the petition here).
Linens 'n Things is blaming the housing market decline and a decline in consumer spending for its $191 million in sale losses of $2.8 billion in 2007.
According to the article, plans are to close 120 stores and turn around the company.
Filing for bankruptcy seemed imminent for the Apollo Management LP portfolio company, which was paying vendors before they delivered merchandise. There were rumors that the company may be close to selling off its string of 40 stores across Canada to shore up cash. Debts include $369 million owed to a lending group led by General Electric Capital Corp. and $650 million in bond debt.
Many other retailers are also ailing due to the credit crunch, and many more are likely to also file for bankruptcy before the end of the year due to the downturn in consumer spending. - Maria Woehr
