Linens Could Liquidate During Holidays

Even in today’s economy, a 32% same-store sales drop looks kind of bad.

That’s why, in part, private-equity firm Cerberus Capital Management has decided not to make a play for the beleaguered Linens ‘n Things, according to this New York Post article. This follows a May bankruptcy declaration and the closing of 120 stores, leaving it with about 475 units.

The Post article says that same-store sales have plunged 32% so far this month after a 25% drop in August. Apparently Cerberus’ management thought that the investment to improve those sales was too high – and they were only planning on acquiring 100 stores. Now the retailer could face liquidation this holiday season…Ho! Ho! Ho!

We assume that Bed Bath & Beyond will step in and take control of some of these store if Linens liquidates, or will another buyer step in? Certainly,landlords can’t be happy about this given the lack of expanding chains out there.

Advertisements

2 Responses to “Linens Could Liquidate During Holidays”


  1. 1 E September 17, 2008 at 9:53 am

    Oh man, just what the retail sector needs, another high profile death in the family. I hope everybody’s using common sense here and not depending the the Christmas 2008 holiday season to rescue the day, cause it ain’t going to happen, regardless of whomever is elected in November.

    With the financial sector tanking as badly as it is (and the wild chicken-little the sky-is-falling-talk about under-insured FDIC deposits), I’d be curious to see what kind of real forecast we’re all looking at for the holiday season.

  2. 2 James September 17, 2008 at 3:54 pm

    Maybe what is worse than an over supply of retail space is an over supply of “Stuff”. We are wallowing in stuff from the recent buying binge fueled by supposedly “cheap” money. The average American can barely get their garage door closed and gave up putting the car in there years ago! Most of us have all the “stuff” we need and now the second phase, the upgrading of stuff, has also stopped.
    The same store sales figures are alarming.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Subscribe
Bookmark and Share

Archives

September 2008
S M T W T F S
« Aug   Oct »
 123456
78910111213
14151617181920
21222324252627
282930  

Ian Ritter on Twitter

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

RSS GlobeSt.com’s Top Stories

  • An error has occurred; the feed is probably down. Try again later.

%d bloggers like this: