Linens ‘n Things to Close 120 Stores, Dispose of Real Estate

Linens Holding Co., a home furnishings specialty retailer operating as Linens ‘n Things, announced today the hiring of DJM Realty, a national retail real estate disposition firm, to exclusively manage the disposition of 120 underperforming stores that the company targeted for closure as part of its restructuring. As previously reported by CPN, Linens ‘n Things filed to reorganize under Chapter 11 on May 2, 2008 and has begun closing the targeted stores. The hiring is subject to bankruptcy court approval. The 120 leases that are available in this bankruptcy sale are located across the country, with a combined square footage of more than 4 million square feet. Reached by CPN this morning, Andy Graiser, co-president of DJM Realty, said that while no rent discounts are expected for purchasers, they “get the benefit here of fully built-off stores. Retailers can start operating in 6 to 12 months. They don’t need approvals that could take years. That’s the benefit of 2nd generation space.” In a prior statement Graiser said, “The real estate locations are all in major markets which are difficult to enter. As with all Chapter 11 projects, the process moves fast and we are expecting an auction before July 31st.” DJM Realty is also disposing of property for Goody’s and the Sharper Image, which are also under Chapter 11 protection. CPN reported in November 2005 that Apollo Management bought Linens ‘n Things in a $1.3 billion deal. The Linens Holding Co. announced on June 2 that the United States Bankruptcy Court approved the company’s $700 million debtor-in-possession financing by General Electric Capital Corp. The approval ensures that Linens N Things’s business and stores will continue to operate without interruption. Additionally, it allows for normalized relations with vendors in preparation for the back-to-school season.Blog Story and Comments