CLIFTON, N.J.–The United States Bankruptcy Court for the District of Delaware approved bankrupt Linens ’n Things’ $700 million debtor-in-possession financing by General Electric Capital Corp.
The approval of the DIP facility ensures that the retailer’s business and stores will continue to operate without interruption, and also allows for normalized relations with vendors in preparation for the back-to-school season, Linens said in a statement.
Linens also announced that about 83 percent of the dollar amount of all product orders from domestic vendors for May and June delivery “have been or are being shipped on terms,” according to a statement from the retailer.
Linens ’n Things filed for bankruptcy on May 2.