Linens ’n Things Agrees to Takeover
Clifton, N.J., Linens ’n Things has agreed to be acquired in a $1.3 billion deal that will take the chain private. The home-furnishings retailer, which has been struggling with stiff competition from discounters and specialty chains, will be acquired by a newly formed company controlled by Apollo Management. Under the terms of the agreement, Linens ’n Things stockholders are to receive $28 per share in cash.
“Apollo is investing in our concept, our company and our future, which will lead to additional new opportunities for all our associates and our business partners,” said Norman Axelrod, chairman and CEO, Linens ’n Things.
The merger is expected to close in the first or early second quarter of 2006.
Kroger Trying to Avoid Strike
Cincinnati, After workers in central Ohio voted yesterday to authorize a strike, Kroger Co. is working to negotiate terms.
The workers are currently under a temporary contract extension and have agreed to give at least 10 days of notice before walking off the job. The workers’ contract expired at midnight on Saturday.
Kroger is attempting to get the workers to pay part of their healthcare costs. The workers currently have no co-payments for their health insurance.
Abercrombie Pulls ‘Offensive’ Shirts
New Albany, Ohio, In the face of criticism and calls for boycotts, Abercrombie & Fitch agreed to stop selling shirts with controversial messages. One of the shirts read across the chest: “Who needs brains when you have these?” The Women & Girls Foundation of Southwest Pennsylvania said they were satisfied with Abercrombie & Fitch’s decision to remove what it called “several offensive t-shirts from its stores. In a statement, the retailer said: “We recognize that the shirts in question, while meant to be humorous, might be troubling to some.”