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===New Growth===
===New Growth===
Linens 'n Things emerged from bankruptcy as a digitally native retailer.<ref name=Savvy>{{cite web|url=http://blogs.courant.com/living_on_less/2009/04/linens-n-things-returns-online.html|archive-url=https://web.archive.org/web/20090411130903/http://blogs.courant.com/living_on_less/2009/04/linens-n-things-returns-online.html|url-status=dead|archive-date=April 11, 2009|title=Linens 'n Things Reopens Online|author=Korky Vann|date=April 2, 2009|work=[[Hartford Courant]] Savvy Shopper|publisher=Lnt.com|access-date=18 December 2013}}</ref><ref>{{Cite web |url=http://www.lnt.com/ |title=Linens-N-Things Official Store |date=Jun 10, 2018 |archive-url=https://web.archive.org/web/20180610222216/http://www.lnt.com/ |via=web.archive.org|access-date=Oct 3, 2019|archive-date=2018-06-10 }}</ref>
Linens 'n Things emerged from bankruptcy as a digitally native retailer.<ref name=Savvy>{{cite web|url=http://blogs.courant.com/living_on_less/2009/04/linens-n-things-returns-online.html|archive-url=https://web.archive.org/web/20090411130903/http://blogs.courant.com/living_on_less/2009/04/linens-n-things-returns-online.html|url-status=dead|archive-date=April 11, 2009|title=Linens 'n Things Reopens Online|author=Korky Vann|date=April 2, 2009|work=[[Hartford Courant]] Savvy Shopper|publisher=Lnt.com|access-date=18 December 2013}}</ref><ref>{{Cite web |url=http://www.lnt.com/ |title=Linens-N-Things Official Store |date=Jun 10, 2018 |archive-url=https://web.archive.org/web/20180610222216/http://www.lnt.com/ |via=web.archive.org|access-date=Oct 3, 2019|archive-date=2018-06-10 }}</ref> In 2020, the brand was acquired by the private equity firm Retail Ecommerce Ventures.<ref>{{Cite web|last=Verdon|first=Joan|title=Pier 1 Imports Gets A Second Chance Online, From E-Commerce Entrepreneurs|url=https://www.forbes.com/sites/joanverdon/2020/07/31/pier-1-imports-gets-a-second-chance-online-from-e-commerce-entrepreneurs/|access-date=2020-08-27|website=Forbes|language=en}}</ref>

The brand is currently under the ownership of Retail Ecommerce Ventures, a private equity firm founded by Alex Mehr and Tai Lopez.<ref>{{Cite web|last=Verdon|first=Joan|title=Pier 1 Imports Gets A Second Chance Online, From E-Commerce Entrepreneurs|url=https://www.forbes.com/sites/joanverdon/2020/07/31/pier-1-imports-gets-a-second-chance-online-from-e-commerce-entrepreneurs/|access-date=2020-08-27|website=Forbes|language=en}}</ref>


==References==
==References==

Revision as of 19:19, 23 September 2023

Linens 'n Things, Inc.
Company typePrivate
IndustryRetail
Founded1975
ProductsHome Furnishings
ParentRetail ECommerce Ventures
Websitehttps://lnt.com/

Linens 'n Things is a digitally native retailer specializing in home textiles, housewares, and decorative home accessories. Linens 'n Things began with operating retail stores between the early 1960s and the late 2010s.[1] In 2020, it became a brand owned by the private equity firm Retail Ecommerce Ventures.

Founding

In November 1958, Eugene Wallace Kalkin established a leased-linen department in the New Jersey discount retailer Great Eastern Mills. After a succession of corporate ownership changes and the bankruptcy of Daylin, Inc. in 1975, Kalkin bought seven locations out of bankruptcy and founded an independent company, which became Linens 'n Things.[2]

By 1983, the chain had grown to 55 stores, and attracted the interest of retail conglomerate Melville Corporation, which acquired it that year. Under CEO Norman Axelrod, who joined in 1989, the company expanded aggressively, particularly in the superstore format; it was locked in a race for locations against archrival Bed, Bath & Beyond.[3] It was spun off in an IPO when Melville reorganized into CVS Corporation in 1996.

Acquisition

The company was acquired in February 2006 by Apollo Global Management, a private equity limited partnership, for US$1.3 billion.[4] As a part of the transition from a public company to the private-owned business, the position of CEO went from Norman Axelrod to Robert (Bob) DiNicola; alongside of him were several executives such as F. David Coder who is President and Omer Fancy who is the executive Vice President of Marketing.

According to Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarterly period ended September 29, 2007, Linens Holding Co. and subsidiaries (including Linens 'n Things, Inc. acquired in February 2006 for cash of approximately $1.3 billion) reported net sales of $666.8 million, versus $658.2 million in the year-earlier period. The increase in net sales was primarily due to the opening of new stores since Sept. 30, 2006 offset by the impact of a decline in comparable store sales. The decline in comparable store sales was primarily due to a decline in customer transactions partially offset by an increase in average transaction value.

The operating loss (after a charge of $16.8 million for impairment of property and equipment in the more recent quarter) was $56.6 million against a loss of $17.9 million a year ago. After net interest expense and other income & expense, the loss before income taxes was $79.2 million compared to a loss of $41.7 million. After provision/benefit for income taxes, Linens Holdings reported a net loss of $79.9 million versus a net loss of $27.4 million.

On April 17, 2008, the New York Post reported that the company was seeking to sell its highly profitable Canadian Division, but no one at Linens 'n Things would confirm nor deny this, saying only that an adviser had been hired to explore strategic alternatives.[5] Ultimately the Canadian Linens 'n Things stores met the same fate as their U.S. counterparts.

Bankruptcy and liquidation

On May 2, 2008, Linens 'n Things filed for Chapter 11 bankruptcy.[6][7] In August 2008, Linens 'n Things devised a plan to emerge from bankruptcy early in 2009. Under the plan, the retailer intended to reverse many of the strategies introduced after the company was bought by Apollo. Chief among those tactics was a shift to splashy clearance sales and product promotions. Revised management wished to return Linens 'n Things to an "everyday, low price" model it had pursued during its earlier years as a public company. It also wished to improve the quality of its merchandise and to keep shelves stocked in timely fashion, the paper said.[8]

On October 7, 2008, Bloomberg News reported that Linens 'n Things asked the Bankruptcy Court for permission to eliminate its entire brick-and-mortar format.[9] On October 14, the company announced it had been bought out by a financial holding company, Hilco Glibal.[10][11]

New Growth

Linens 'n Things emerged from bankruptcy as a digitally native retailer.[12][13] In 2020, the brand was acquired by the private equity firm Retail Ecommerce Ventures.[14]

References

  1. ^ Linens 'n Things trims workforce Archived 2007-07-04 at the Wayback Machine, The Record (Bergen County) by Carol Fletcher, March 16, 2007.
  2. ^ "LNT: 33 Years Later, Saying Goodbye to An Old Friend", Home Textiles Today, 20 October 2008, retrieved September 25, 2020
  3. ^ Lasseter, Diana G. (November 15, 1995), "A Retailer Tries to Blanket Its Market", NJBIZ
  4. ^ Cite error: The named reference Record0307 was invoked but never defined (see the help page).
  5. ^ Linens 'n Things Seeks to Sell Canadian Stores, N.Y. Post Says, accessed April 17, 2008.
  6. ^ "Linens Holding Co. Chapter 11 Petition" (PDF). PacerMonitor. Retrieved 9 May 2016.
  7. ^ Linen 'n Things files bankruptcy, to close 120 stores, accessed May 2, 2008. Archived May 31, 2008, at the Wayback Machine
  8. ^ Linens 'n Things plans bankruptcy exit: report, accessed August 18, 2008.
  9. ^ Linens 'n Things seeks to speed up remaining store closings, accessed October 8, 2008
  10. ^ Cite error: The named reference reuters.com was invoked but never defined (see the help page).
  11. ^ Cite error: The named reference St. Louis Business Journal was invoked but never defined (see the help page).
  12. ^ Korky Vann (April 2, 2009). "Linens 'n Things Reopens Online". Hartford Courant Savvy Shopper. Lnt.com. Archived from the original on April 11, 2009. Retrieved 18 December 2013.
  13. ^ "Linens-N-Things Official Store". Jun 10, 2018. Archived from the original on 2018-06-10. Retrieved Oct 3, 2019 – via web.archive.org.
  14. ^ Verdon, Joan. "Pier 1 Imports Gets A Second Chance Online, From E-Commerce Entrepreneurs". Forbes. Retrieved 2020-08-27.

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