CLIFTON, N.J.–Bankrupt Linens ’n Things received approval from Judge Christopher Sontchi of the United States Bankruptcy Court for the District of Delaware for the retailer to access its $700 million debtor-in-possession financing pending a hearing on final approval later this month.
The DIP facility will enable the retailer to quickly normalize vendor relationships, “providing a healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons, and meet its ongoing obligations through the restructuring process,” Linens ’n Things said in a statement.
The court put into effect numerous orders to ensure the smooth operation of the retailer’s business and stores. These include payment of wages, insurance and other health-care benefits, workers’ compensation programs, 401(k) contributions and other associate benefits.