CLIFTON, N.J.–Linens ’n Things filed a plan of reorganization with the U.S. bankruptcy court on Aug. 29 that projects the retailer’s emergence from Chapter 11 by no later than Jan. 31, 2009. At the same time, Bob DiNicola has resigned as executive chairman. DiNicola was Linens’ chief executive officer until the retailer filed for bankruptcy in May.
The reorganization plan calls for the senior lenders to be paid in full and the holders of the senior notes to convert the majority of their debt into all of the ownership of the reorganized Linens ’n Things. Currently, shareholders, including majority shareholder private-equity firm Apollo, will relinquish ownership of the company.
Unsecured creditors, including home vendors, will receive warrants to purchase common stock in the new company.
The retailer also anticipates that other than interim Chief Executive Officer Michael Gries, Linens’ current management team will remain in place.
The plan does not call for any additional store closings beyond those already announced.