(Updates with details about store closings)
NEW YORK Oct 15 Going-out-of business sales at
Linens 'n Things stores will begin on Friday after the bankrupt
home goods retailer failed to find a buyer to keep the chain
A group of six of the U.S. largest liquidators who made a
$475 million offer for the company, were the only buyers to
emerge for the retailer's assets in a bankruptcy auction.
In the liquidation, 371 stores throughout the United States
will go dark, the liquidators said in a statement on Wednesday.
The company's Canadian stores are also set to be liquidated.
The liquidators expect to sell more than $1 billion of
inventory and store fixtures in the going-out-of business
sales, they said.
When Linens filed for bankruptcy protection in May, it
billed itself as the second largest specialty retailer of home
textiles, housewares and home accessories in North America. At
the time it was running 589 stores and it has already taken
steps to close around 200 locations during the bankruptcy.
The joint venture of liquidators running the store closing
sales includes Gordon Brothers Retail Partners, Hilco Merchant
Resources, SB Capital Group, Tiger/Nassi Group, Hudson Capital
Partners and Great American Group.
The stores are expected to be completely closed in less
than 11 weeks, by Jan. 1 at the latest.
The Clifton, New Jersey-based company, along with other
home goods retailers, was hurt by the sharp decline in the U.S.
housing market and consumers who pulled back on discretionary
spending. The company had also been bought for $1.3 billion in
2006 by buyout firm Apollo Global Management, leaving it with a
In August, Linens put forward a reorganization plan to
emerge from bankruptcy in 2009, but the company failed to gain
enough support from creditors, forcing it to auction off its
Proceeds from the liquidation will be used to pay off the
company's creditors, but many of its lower tier unsecured
creditors are unlikely to receive anything back.
(Reporting by Emily Chasan; Editing by Andre Grenon)