Clifton, N.J. Linens ’n Things filed for Chapter 11 bankruptcy protection on Friday. According to Reuters, the home-goods retailer will close 120 underperforming stores.
Reportedly, Linens ’n Things will continue to operate its remaining stores without interruption. It has obtained $700 million in financing from GE Capital to purchase merchandise through the back-to-school and holiday seasons.
Only LNT stores in the United States are impacted by the filing and there is no plan for a similar filing relative to the company’s Canadian stores, which have been among the strongest performers in the Linens ’n Things portfolio.
Michael Gries, a financial restructuring specialist, will take over as chief restructuring officer and interim chief executive. Linens ’n Things’ current chairman and chief executive, Robert DiNicola will become executive chairman and David Coder, currently executive VP, store operations, will assume the role of president and COO.
The company has petitioned the bankruptcy court for immediate authorization to continue paying salaries and benefits to its employees, as well as to honor outstanding gift cards and store credits.