CLIFTON, N.J.–An ad hoc committee composed of a large portion of Linens ’n Things vendors has been formed, at the request and assistance of the retailer. The chain is in discussions with the committee on the uninterrupted supply of products to the chain and the restructuring of its operations.
“Together with our financial advisors, we are working closely with our major constituencies, including the recently formed ad hoc committee of noteholders and now the merchandise vendors, to determine the best path forward for LNT,” said Bob DiNicola, chairman and chief executive officer, in a statement. “With everyone’s cooperation, we can ensure that normal business operations continue. At the same time, we are evaluating our options and exploring several alternatives in our efforts to recapitalize the company.”
Numerous vendors have told HFN that they have stopped shipping the chain due to non payment and advice from factoring firms.
Linens is evaluating scenarios that include filing a pre-packaged bankruptcy or securing a cash infusion from Apollo Management LP, the private-equity firm that purchased the retailer in 2006, DiNicola told HFN last week.
The committee is represented by law firm Otterbourg, Steindler, Houston & Rosen, P.C. and its financial advisor Carl Marks Advisory Group.