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Linens 'n Things' Canadian Stores May Be Salvaged
Private-equity shops may come to the rescue of the home-furnishing retailer's only profitable stores in Canada.
October 6, 2008
Private equity shops may scoop up Clifton, NJ-based Linens ‘n Things’ profitable arm in Canada, according to a report in the New York Post. The home-furnishings retailer filed for Chapter 11 in May.
Hudson’s Bay Trading Co. (HBTC) is interested in acquiring nearly 40 brick and mortar stores from Linens 'n Things in Canada, according to the report. Hudson's Bay is a rival to the troubled retailer in Canada and operates under the brand Home Outfitters. It was recently acquired by real estate firm NRDC Equity Partners, which also owns luxury retailers Lord & Taylor and Fortunoff. If talks prove successful, it is unclear whether the remaining Linens ‘n Things Canadian stores would be converted under Hudson’s Bay's brand. "HBTC consistently reviews acquisition opportunities that can potentially add value to our existing portfolio of brands," an HBTC spokesperson told IDD.
Additionally, the troubled retailer is negotiating with Toronto-based private equity shop Hilco Consumer Capital, which has expressed an interest in salvaging the company’s Canadian interests. Rick Kaye at Hilco Trading told IDD he was not able to confirm anything. Linens ‘n Things is a portfolio holding of Apollo Global Management.
But talks have gone south for the retailer before, as just last month private equity firm Cerberus Capital Management abandoned its plans to buy the troubled retail chain. Linens ‘n Things has already closed 120 of its stores in the US, which leaves it with 475 stores across the US and Canada, where it did not include its stores in the bankruptcy filing.
Calls to Linens ‘n Things were not returned.
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