Linens 'n Things delays 10-Q filing while it completes asset impairment analysis

By Caroline Salls

Pittsburgh, Aug. 12 - Linens Holding Co. needs more time to complete its consolidated second-quarter financial statements, but the company did disclose that it recorded $504 million in sales for the quarter ended June 28, according to a company news release.

The company said its bankruptcy filing prompted the delay in preparing its complete financial results. Linens said it is performing an impairment analysis related to some of its tangible and intangible assets in connection with the bankruptcy filing.

Linens said it intends to finalize the statements and file its 10-Q with the Securities and Exchange Commission as soon as possible.

According to the release, the $468.1 million of net retail sales posted for the second quarter represented a 21.1% decrease over the same period in 2007.

Total net retail sales for the quarter did not include $35.9 million in liquidation sales held in connection with the previously announced closing of 120 stores.

In addition, Linens said it ended the quarter with an asset-based revolver balance of $200.9 million, cash on hand of $42.7 million and excess availability under its revolving credit facility of $176.7 million.

As of the close of business on Aug. 10, the company said it had $74.2 million of excess availability under its revolver, which was reduced by a $75 million letter of credit issued in support of its Enhanced Trade Credit Program.

The company also reported $1.071 billion in total sales for the 26-week period ended June 28. Net retail sales of $1.035 billion for the 26-week period represented an 11.2% decrease over the same period in 2007.

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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