Monday December 9th, 2013 - 12:51PM
Linens 'N Things Brand, which filed for bankruptcy in 2008, has been sold to Galaxy Brand Holdings for an undisclosed amount. According to Galaxy, it plans to re-establish the brand as a premier home destination both in-store and online shopping.
"Linens 'N Things enjoys a rich history of providing consumers with a broad assortment of high-quality, value-priced home products. We plan to leverage this heritage to connect with consumers by offering Linens 'N Things branded products, and by re-establishing the brand as a premier home destination both in-store and online," said Abe M. Hidary, vp/corporate development at Galaxy Brand Holdings.
Investment firms Hilco Consumer Capital and Gordon Brothers Brands acquired the brand in February 2009, and disposed of the company's assets, including store and e-commerce inventory and real estate. The intellectual property was subsequently acquired by a joint venture including Hilco Global, Gordon Brothers Group and Infinity Lifestyle Brands. The Linens 'N Things brand was re-launched as an online retailer of home goods, providing a wide array of home merchandise at value-oriented prices directly to consumers.
Prior to its 2008 bankruptcy, Linens 'N Things operated 571 home goods stores and generated $2.7 billion in annual revenue.
Galaxy Brand Holdings, a New York-based holding company of several consumer brands such as shoe maker Avia, is largely owned by private equity firm The Carlyle Group.
"This transaction marks another successful turnaround of a valued brand. We are excited for Galaxy to continue the growth the brand has experienced over the past few years and build upon the brand's strong history and resonance with consumers," stated Jeffery Hecktman, chairman and CEO of Hilco Global.
Kenneth S. Frieze, president of Gordon Brothers Group, added, "We've been proud stewards of the Linens 'N Things brand for the past four years and believe that this sale takes place at an exciting time for Galaxy, who will undoubtedly have enormous success taking it to the next level."
"The brand equity inherent in Linens 'N Things is testimony to the power of our unique licensing platform," stated Ike S. Franco, chairman of Infinity Group LLC.
The transaction follows on the heels of other successful brand turnarounds such as The Bombay Company, Polaroid and The Sharper Image by Hilco Brands, a division of Hilco Global and Gordon Brothers Group's Brand Division, the company said.