Linens 'n Things requests court OK of bid procedures for intellectual property sale

By Jennifer Lanning Drey

Portland, Ore., Dec. 23 - Linens Holding Co. requested court approval of the bidding procedures for the proposed sale of its intellectual property assets for $1 million in cash plus 25% of the membership interests of the buyer, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The stalking horse bidder is LNT Acquisition and a joint venture consisting of Hilco Consumer Capital, LLC and Gordon Brothers Brands, LLC.

Under the proposed bid procedures, competing bids are due by 4 p.m. ET on Jan. 14.

Overbids must be for at least $2.5 million.

An auction will be held on Jan. 15 if competing bids are received.

If the Hilco/Gordon Brothers joint venture is not the highest bidder Linens will pay a $170,000 break-up fee.

Linens' intellectual property assets include patents, trademarks and brand names, copyrights and registrations, software and technology owned by Linens, e-mail mailing lists and advertising and marketing materials.

The company has requested a sale hearing on Jan. 16.

Linens 'n Things, a Clifton, N.J., home furnishings specialty retailer, filed for bankruptcy on May 2, 2008. Its Chapter 11 case number is 08-10832.

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