Linens 'n Things weighing bankruptcy: source

By Martinne Geller

NEW YORK (Reuters) - Home goods retailer Linens 'n Things is considering filing for Chapter 11 bankruptcy court protection, a person familiar with the situation said on Friday.

The chain, owned by Leon Black's buyout firm Apollo Global Management, is negotiating with creditors, which include General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz), the source said.

While bankruptcy is "on the table," it is one of many options being considered, the source said. "It is not the top option, nor is it the option that the company is currently pursuing at this very second."

Citing people with knowledge of the situation, the Wall Street Journal reported on Friday that the retailer could file for bankruptcy protection by Tuesday.

Following a report by Bloomberg News that Linens 'n Things had hired Conway Del Genio Gries & Co, one of the restructuring firm's principals confirmed the hiring, but would not discuss any details.

Apollo, which bought the retailer in 2006 for $1.3 billion, declined to comment. Apollo filed this week for an initial public offering.

A Linens 'n Things spokesman did not return a call and e-mail seeking comment.

A GE spokesman confirmed that its Commercial Finance unit is the lead agent on a $700 million revolving credit facility to Linens 'n Things, but declined to comment further.