Linens 'n Things sets procedures for store closing sale agent selection

By Caroline Salls

Pittsburgh, May 6 - Linens Holding Co. requested court approval of the procedures for selection of a liquidation agent to hold store closing sales at 120 of its retail locations, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the proposed store closing sales will reduce the administrative costs associated with operation of the underperforming stores, and the sale proceeds will be used to reduce the company's secured debt.

Initial liquidation agent bids are due May 8. Linens said it expects to select a stalking horse bidder from these initial offers.

After that, final bids must be submitted by 4 p.m. ET on May 27.

The auction will be held on May 29, and the company has asked the court to schedule the sale hearing for May 30.

Linens said the store closing sales could begin one day after the hearing for approval of the liquidation agent, and the closing sales should be completed well within 120 days of that date.

Linens has requested a May 13 hearing on the sale procedures.

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

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