From the Pacific Business News:
Home furnishings retailer Linens ‘N Things filed for Chapter 11 bankruptcy
protection Friday and said it will close 120 underperforming stores as part of
its restructuring.
Clifton, N.J.-based Linens Holding Co., parent of the
chain, said the Chapter 11 filing was largely the result of the economic
downturn.
“The significant deterioration in the mortgage, housing and
credit markets and the resulting impact on the retail marketplace, particularly
the home sector, has overwhelmed the operating and merchandising improvements
that we have made over the past two years,” said Robert J. DiNicola, Linens
Holding executive chairman, in a release. “We are making the strategic decision
to use a Chapter 11 filing to proactively address our capital structure and
ensure that our stores will remain well stocked while we work through the steps
to align the capital structure of the company with the realities of today’s
business environment.”
Proof positive that the problems in the housing market are spilling over into related industries. Earlier Home Depot announced it was laying off 1,300 employees and closing 15 stores. Now, Linens ‘N Things has filed for bankruptcy.
Not to mention Starbucks.
Real estate investors should expect some great deals on props for home staging!
Photo: Color Your Life, originally uploaded by Orangeya.