Linens 'n Things trade vendor payment program approved

By Caroline Salls

Pittsburgh, July 10 - Linens Holding Co. obtained court approval of its vendor trade payment program, which will provide up to $100 million in letters of credit to support qualified post-bankruptcy vendor obligations, up to a cap of $200 million, according to a company news release.

"We believe that the new trade vendor payment program will further enhance our trade relationships as we complete the receipt of merchandise for the back-to-school and holiday selling seasons," chief restructuring officer and interim chief executive officer Michael Gries said in the release.

Linens said vendors who want to participate in the trade vendor payment program will need to agree to continue to supply and ship goods under normal and customary trade terms and practices and require payment no less than 45 days after shipment and invoicing of the goods.

Linens 'n Things, a Clifton, N.J., home furnishings specialty retailer, filed for bankruptcy on May 2 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-10832.

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