Linens 'n Things: Difference between revisions
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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. |
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. |
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The company was expected to possibly file for [[Chapter 11 bankruptcy]] protection by April 11 |
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.<ref>[http://www.marketwatch.com/news/story/linens-n-things-may-file/story.aspx?guid=%7B5438582D-B1FA-4FF1-A9E8-B1F592F47BC9%7D&dist=msr_2 Linens 'n Things may file for Chapter 11], accessed [[April 11]], [[2008]].</ref> |
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On April 17, the company announced the sale of its 40 Canadian stores. Competitor [[Bed Bath & Beyond]] is among the potential buyers for the stores.<ref>[http://www.bloomberg.com/apps/news?pid=20601082&sid=aaikXmH.lKXA&refer=canada Linens 'n Things Seeks to Sell Canadian Stores, N.Y. Post Says], accessed [[April 17]], [[2008]].</ref> |
On April 17, the company announced the sale of its 40 Canadian stores. Competitor [[Bed Bath & Beyond]] is among the potential buyers for the stores.<ref>[http://www.bloomberg.com/apps/news?pid=20601082&sid=aaikXmH.lKXA&refer=canada Linens 'n Things Seeks to Sell Canadian Stores, N.Y. Post Says], accessed [[April 17]], [[2008]].</ref> |
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On May 2, 2008, Linens 'n Things filed for Chapter 11 bankruptcy and will close 120 stores.<ref>[http://www.ktvb.com/news/business/stories/ktvbn-may0208-linen_%27n_things_bankruptcy.c0856185.html Linen 'n Things files bankruptcy, to close 120 stores], accessed [[May 2]], [[2008]].</ref> |
On May 2, 2008, Linens 'n Things filed for [[Chapter 11 bankruptcy]] and will close 120 stores.<ref>[http://www.ktvb.com/news/business/stories/ktvbn-may0208-linen_%27n_things_bankruptcy.c0856185.html Linen 'n Things files bankruptcy, to close 120 stores], accessed [[May 2]], [[2008]].</ref> |
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==References== |
==References== |
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Revision as of 01:35, 3 May 2008
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| Company type | Privately owned |
|---|---|
| Industry | Retail |
| Founded | 1975 |
| Headquarters | Clifton, New Jersey |
Key people | Francis M Rowan (CFO), Robert (Bob) DiNicola, (CEO) |
| Products | Home Furnishings |
| Revenue | $2.70 bil in 2005.[1] |
| Website | http://www.lnt.com/ |
Linens 'n Things, Inc., headquartered in Clifton, New Jersey, is the first-largest large-format retailers of home textiles, housewares and decorative home accessories in the United States.[2] The chain operates 571 stores in 47 states and six Canadian provinces, and had 7,300 employees as of December 2006.[1]
The company's business strategy is "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."[3]
Acquisition and trouble
The company was acquired in February 2006 by Apollo Management, a private equity limited partnership, for $1.3 billion.[1] 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 Executive Vice President.
According to Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarterly period ended Sept. 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, the company announced the sale of its 40 Canadian stores. Competitor Bed Bath & Beyond is among the potential buyers for the stores.[4]
On May 2, 2008, Linens 'n Things filed for Chapter 11 bankruptcy and will close 120 stores.[5]
References
- ^ a b c Forbes.com List of Largest Private Companies, accessed April 26,2007.
- ^ Linens 'n Things trims workforce, The Record (Bergen County) by Carol Fletcher, March 16, 2007.
- ^ Company Profile, accessed April 9, 2007.
- ^ Linens 'n Things Seeks to Sell Canadian Stores, N.Y. Post Says, accessed April 17, 2008.
- ^ Linen 'n Things files bankruptcy, to close 120 stores, accessed May 2, 2008.