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Linens 'n Things Begins Closure Of 120 Locations

Posted 6/5/2008 - 9:43:29 PM

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Linens Holdings, the parent company of Linens 'n Things has entered into an "Agency Agreement" with a joint venture comprised of Tiger Capita Group, LLC and SB Capital Group LLC to conduct store closing sales.

On May 30, the Bankruptcy Court approved the Agency Agreement, authorizing Linens 'n Things to conduct store closing sales at 120 underpeforming stores. The store closing sales began May 31 and most locations being shuttered are expected to be closed by the end of August, according to company SEC filing.

Linens ‘n Things recently received court approval of its $700 million DIP Credit Agreement from GE Capital Corporation.

According to a Linens ‘n Things SEC filing, the company had excess availability of $140.7 million under the Revolver, as of the close of business on May 29. This amount reflects an increase of $44.1 million over the excess availability projected by the debtors for the end of May in the DIP Budget referred to in the order granting the interim approval of the DIP Credit Agreement.