Linens 'n Things was a Clifton, New Jersey-based big-box retailer specializing in home textiles, housewares, and decorative home accessories. The

chain A chain is a serial assembly of connected pieces, called links, typically made of metal, with an overall character similar to that of a rope in that it is flexible and curved in compression but linear, rigid, and load-bearing in tension. A c ...

operated 571 stores in 47 U.S. states and six Canadian provinces, and had 7,300 employees as of December 2006. The company's business strategy was "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs." Burdened with debt after private equity buyouts, the company announced it would shutter all remaining stores in October 2008."Linens 'n Things store closings to begin Friday"
accessed October 16, 2008 It was relaunched as an online-only retailer in February 2009 at its former domain name, LNT.com, selling similar products as its brick-and-mortar stores had. As an online retailer, it originally ceased operating in 2018. In July 2020, the rights to Linens 'n Things were acquired by holding company Retail Ecommerce Ventures (REV), which was founded by former NASA scientist Alex Mehr and serial entrepreneur Tai Lopez. As of November 2020, the website was relaunched for the second time.

Founding

In November 1958, Eugene Wallace Kalkin established a leased-linen department in the New Jersey discount retailer Great Eastern Mills. After a succession of corporate ownership changes and the bankruptcy of Daylin, Inc. in 1975, Kalkin bought seven locations out of bankruptcy and founded an independent company, which became Linens 'n Things. By 1983, the chain had grown to 55 stores, and attracted the interest of retail conglomerate Melville Corporation, which acquired it that year. Under CEO Norman Axelrod, who joined in 1989, the company expanded aggressively, particularly in the superstore format; it was locked in a race for locations against archrival Bed, Bath & Beyond. It was spun off in an IPO when Melville reorganized into CVS Corporation in 1996.

Acquisition and trouble

2008-11-22 Linens 'n Things store closing in Durham

The company was acquired in February 2006 by

Apollo Global Management Apollo Global Management, Inc. is an American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets. As of March 31, 2022, the company had $512 billion of assets under management, ...

, a private equity

limited partnership A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...

, for US$1.3 billion. As a part of the transition from a public company to the private-owned business, the position of CEO went from Norman Axelrod to Robert (Bob) DiNicola; alongside of him were several executives such as F. David Coder who is President and Omer Fancy who is the executive Vice President of Marketing. According to Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarterly period ended September 29, 2007, Linens Holding Co. and subsidiaries (including Linens 'n Things, Inc. acquired in February 2006 for cash of approximately $1.3 billion) reported net sales of $666.8 million, versus $658.2 million in the year-earlier period. The increase in net sales was primarily due to the opening of new stores since Sept. 30, 2006 offset by the impact of a decline in comparable store sales. The decline in comparable store sales was primarily due to a decline in customer transactions partially offset by an increase in average transaction value. The operating loss (after a charge of $16.8 million for impairment of property and equipment in the more recent quarter) was $56.6 million against a loss of $17.9 million a year ago. After net interest expense and other income & expense, the loss before income taxes was $79.2 million compared to a loss of $41.7 million. After provision/benefit for income taxes, Linens Holdings reported a net loss of $79.9 million versus a net loss of $27.4 million. On April 17, 2008, the ''New York Post'' reported that the company was seeking to sell its highly profitable Canadian Division, but no one at Linens 'n Things would confirm nor deny this, saying only that an adviser had been hired to explore strategic alternatives. Ultimately the Canadian Linens 'n Things stores met the same fate as their U.S. counterparts.

Bankruptcy and liquidation

On May 2, 2008, Linens 'n Things filed for

Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...

and closed 120 stores. In August 2008, Linens 'n Things devised a plan to emerge from bankruptcy early in 2009. Under the plan, the retailer intended to reverse many of the strategies introduced after the company was bought by Apollo. Chief among those tactics was a shift to splashy clearance sales and product promotions. Revised management wished to return Linens 'n Things to an "everyday, low price" model it had pursued during its earlier years as a public company. It also wished to improve the quality of its merchandise and to keep shelves stocked in timely fashion, the paper said. On October 7, 2008, Bloomberg News reported that Linens 'n Things asked the

Bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...

Court for permission to auction the remaining 371 stores and hold store closing sales. On October 14, the company announced its official sale to a group of asset recovery specialists. The company began going-out-of-business sales at its remaining stores in both the United States and Canada and on the chain's website, LNT.com, on October 17. The sales concluded on December 28, 2008 in all stores, but Linens 'n Things continued the going-out-of-business sale on its website until February 15, 2009. Following the chain's closure, a vacant store in

Middletown, Rhode Island Middletown is a town in Newport County, Rhode Island, United States. The population was 17,075 at the 2020 census. It lies to the south of Portsmouth and to the north of Newport on Aquidneck Island, hence the name "Middletown". History Vari ...

was used by film director Wes Anderson in 2011 to construct and film sets for his film '' Moonrise Kingdom''.

Online revival

In 2009, Linens 'n Things emerged from bankruptcy as planned and announced that the website would remain open for business following the conclusion of the primary online store closing sale. The e-commerce site was taken over by new ownership to continue the same focus as the brick and mortar stores prior to their closing. Following the conclusion of business on the original website on February 15, 2009, customers were redirected to the online store's new home, originally located at thenewlnt.com but later relocated to the old domain name, lnt.com. Linens N Things was sold on December 9, 2013 from Gordon Brother & Hilco Global to the Galaxy Brand Holdings,Gordon Brothers Group And Hilco Global Announce Sale Of Linens 'N Things To Galaxy Brand Holdings
accessed March 28, 2014 subsequently shutting down the website in 2018. The brand is currently under the ownership of Retail Ecommerce Ventures, a holding company founded by Alex Mehr and Tai Lopez, which is dedicated to acquiring and reviving distressed brands as e-commerce businesses. REV has also acquired a number of other brands, such as Dressbarn,

Modell's Sporting Goods Modell's Sporting Goods is an American online sporting goods retailer that had locations in the Northeastern United States. Modell's carries both sporting goods and related apparel. Modell's had more than 150 retail locations in ten states and ...

, the Franklin Mint, and Pier 1 Imports. On August 31, 2021, Linens 'n' Things' current parent company, Sequential Brands, filed for Chapter 11 bankruptcy protection.

References

External links

{{DEFAULTSORT:Linens Bedding 'N Things Online retailers of the United States Home decor retailers Companies based in Passaic County, New Jersey Clifton, New Jersey American companies established in 1975 Retail companies established in 1975 Retail companies disestablished in 2008 Companies that filed for Chapter 11 bankruptcy in 2008 Companies that filed for Chapter 11 bankruptcy in 2021 Companies that have filed for Chapter 7 bankruptcy Private equity portfolio companies Re-established companies Retail companies established in 2009 Retail companies disestablished in 2018 Apollo Global Management companies American brands Defunct retail companies of the United States