UPDATE 1-Linens 'n Things in talks with vendors over supply

(Adds company background, detail on news reports)

LOS ANGELES, April 18 (Reuters) - Linens n' Things said on Friday an ad hoc committee of its major vendors had been formed to discuss ensuring an uninterrupted supply of products to the retailer as it seeks to restructure its debts.

The seller of textiles, housewares and other home goods is in talks with a committee of its debtholders about altering its capital structure. It said on Friday those talks were under way with the vendors as well.

Earlier this week, the company said it had delayed a $16 million interest payment and that its lenders had agreed to delay exercising their right to stop making loans to the company.

Chief Executive Robert DiNicola said in a statement that the company was evaluating its options and exploring "several alternatives in our efforts to recapitalize the company."

Last week, the Wall Street Journal reported that the company could file for Chapter 11 bankruptcy protection in what would be one of the biggest failures by a business acquired during the recent private equity boom.

The company blames its problems on the credit crunch, housing downturn and consumer spending slowdown in the United States.

Linens n' Things is owned by affiliates of billionaire investor Leon Black's firm, Apollo Global Management. (Reporting by Alexandria Sage; Editing by Braden Reddall)