Linens 'n Things Postpones Major Loan Payment
By Staff -- Gifts & Decorative Accessories, 4/15/2008 6:45:00 PM
Clifton, N.J. – Struggling retailer Linens ’n Things (LNT) postponed until May 15 a $16.1 million interest payment due today to its debt holders, according to Home Textiles Today the textile industry's leading trade publication. In addition, the retailer also obtained agreement from its lenders to take no “rights and remedies” action until May 13, the company stated in an 8-K filed with the SEC, HTT reported.
In addition to household linens, bathroom and kitchen accessories, LNT sells a wide variety of gift products. This merchandise includes gifts for wedding party members, picture frames, engraved and monogrammed gifts, gourmet gift baskets, candle accessories and more. The retailer also sells its gift products, as well as other merchandise, online.
LNT made no mention of negotiating with its merchandise suppliers, some of whom had said they were preparing to meet Monday with the chain’s executives. Some vendors were said to be shipping Linens ’n Things on a C.O.D. basis; others were said to have ceased shipping goods to the 589-store category killer.
Robert DiNicola, chairman and CEO, said in a statement today that harsh macroeconomic conditions have led many LNT vendors “to recently begin imposing significantly more restrictive payment terms on LNT,” according to HTT.
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