Linen N Things selling off all its Linens

www.EmploymentCrossing.com Specialty retailer Linens 'n Things, which filed for bankruptcy protection in May, plans to begin liquidation sales at its stores as early as Thursday after failing to find a buyer that wanted to operate the company. "It's a straight going-out-of business liquidation sale," said James Schaye, CEO of Hudson Capital Partners, one of the members of the investment group that bought company's assets. He expects the process for the company's 371 remaining stores will take about 11 weeks. Last week, the Linens Holding Company, parent of Clifton, New Jersey-based Linens 'N Things, had hoped to put itself up for a sale in an auction. The company agreed to a preliminary "stalking horse" bid from a joint venture between a number of capital groups, for $475 million for its assets. A stalking-horse bid is an initial offer on a bankrupt company's assets from an interested buyer chosen by the company. Linens 'N Things planned to hold an auction for its assets, but since it received no other qualified bids, it canceled the auction. After facing weak sales and a slumping home furnishings market, Linens 'N Things filed for Chapter 11 bankruptcy protection in May. In August, the company said it reached a plan of reorganization with the bankruptcy court. However, it later decided to auction its assets as conditions in the financial markets worsened.