Single Page | 
Multiple Pages
Home > BizTimes Daily > Archives > May 2, 2008
Linens 'n Things will file for bankruptcy, close Wisconsin stores
Published May 2, 2008 - BizTimes Daily
A day after The Home Depot Inc. announced it will close 15 stores, Linens Holding Co. today said it will file for Chapter 11 bankruptcy and close 120 of its Linens 'n Things stores, including three in Wisconsin.
The Wisconsin Linens 'n things stores to be closed are the stores at the Shops of Grand Avenue in Milwaukee, the Regency Mall in Racine and Greenway Station in Middleton.
Clifton, N.J.-based Linens Holding Co. blamed its bankruptcy and the store closings on the icy economy.
"The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years," said Robert DiNicola, executive chairman of the company. "We are making the strategic decision to use a Chapter 11 filing to proactively address our capital structure and ensure that our stores will remain well stocked while we work through the steps to align the capital structure of the Company with the realities of today's business environment.
Linens Holding Co. has secured $700 million in debtor-in-possession (DIP) financing from General Electric Capital Corp., which will ensure healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons.
Atlanta-based Home Depot announced Thursday it will close 15 U.S. stores, including the store at 7401 W. Good Hope Road in Milwaukee. Home Depot also said it scrapping plans for 50 new stores.
Home Depot said it will record a charge of approximately $400 million related to capitalized development costs and ongoing obligations associated with the decision not to go forward with the new stores.
