Linens N Things

About Linens N Things

Linens N Things filed for Chapter 11 bankruptcy on May 2, 2008. The home goods retailer had 589 stores. Apollo Management had acquired Linens N Things in a 1.3 billion leveraged buyout in 2005. The LBO saddled the company with debt. Competition from Bed Bath and Beyond, Walmart, and Amazon reduced sales. Linens N Things liquidated all stores by October 2008, eliminating approximately 17,500 jobs. The brand was acquired by Galaxy Brand Holdings and relaunched as an online retailer. The Linens N Things bankruptcy was one of several retail failures caused by private equity LBOs in the 2000s. The case illustrated how LBO debt burdens could prevent retailers from investing in operations and adapting to competition.