UPDATE 1-Linens 'n Things to begin liquidation of 120 stores

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NEW YORK, May 30 (Reuters) - Bankrupt U.S. home goods retailer Linens 'n Things will begin liquidating 120 of its more than 500 stores on Saturday as it gained court approval to hire two liquidation firms, it said on Friday.

The company, which filed for bankruptcy protection earlier this month, plans to liquidate more than $275 million in inventory.

A joint venture between liquidation firms Tiger Capital Group and SB Capital Group won the rights to run the store closings at an auction earlier this week. The deal has received bankruptcy court approval, the retailer said in a statement.

Linens 'n Things, which was bought by Leon Black's buyout firm Apollo Management in 2006, had said it planned to close its 120 "underperforming" stores when it filed for bankruptcy protection May 2.

Of the 120 stores that are being liquidated, 27 are located in California, more than any other state. The other states with significant numbers of store closings were Texas, with 10 stores, and Michigan, where the company plans to close eight stores. (Reporting by Emily Chasan; editing by Carol Bishopric, Leslie Gevirtz)