Clifton, N.J. Linens ’n Things could file a plan to reorganize its business as early as Friday, according to the New York Post.
The restructuring plan states that the chain will close as many as one third of its existing stores, the report said.
The bid to downsize Linens ’n Things comes on the heels of bondholders’ threats to liquidate the company.
The retailer was bought for $1.3 billion in 2005 by billionaire Leon Black's buyout firm Apollo Management. Linens ’n Things filed for Chapter 11 bankruptcy protection in May, hurt by a slowdown in consumer spending due to higher energy and food prices.
The chain expects this move to help it emerge from bankruptcy early next year.