CLIFTON, N.J. - (Business Wire) Linens Holding Co. (
“LNT
” or the
“Company
”), a leading home furnishings specialty retailer operating as
“Linens
‘n Things,
” announced today that the United States Bankruptcy Court for the District of Delaware entered an order approving the Company
’s Trade Vendor Payment Program. The new enhanced trade credit program will provide letters of credit of up to $100 million to support qualified post-petition vendor obligations up to a cap of $200 million.
“We have been pleased with the depth and breadth of vendor support to date and as we move forward with our financial restructuring. We believe that the new Trade Vendor Payment Program will further enhance our trade relationships as we complete the receipt of merchandise for the back-to-school and holiday selling seasons,” said Michael Gries, Chief Restructuring Officer and Interim CEO. In approving the order at the court hearing, Bankruptcy Court Judge Christopher S. Sontchi stated, “[B]ased on the evidence—uncontested evidence, support of the [Creditors’] Committee, I think it’s a more than reasonable exercise of the debtors’ business judgment.”
Vendors who wish to qualify for participation in the Trade Vendor Payment Program will need to sign up with LNT by executing a Letter Agreement which provides for vendors to continue to supply and ship goods under normal and customary trade terms and practices and requires payment no fewer than 45 days after shipment and invoicing of the goods to the Company.
Linens ‘n Things, with 2007 sales of approximately $2.8 billion, is one of the leading, national large format retailers of home textiles, housewares and home accessories. As of December 29, 2007, Linens ‘n Things operated 589 stores in 47 states and seven provinces across the United States and Canada. More information about Linens ‘n Things can be found online at www.lnt.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business that is not historical information. As a general matter, forward-looking statements are those focused upon future or anticipated events or trends and expectations and beliefs relating to matters that are not historical in nature. The words “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions, as well as future or conditional verbs such as “will,” “should,” “would” and “could,” often identify forward-looking statements. The Company believes there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain, and we may not realize our expectations and our beliefs may not prove correct. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The Company’s actual results and future financial condition may differ materially from those described or implied by any such forward-looking statements as a result of many factors that may be outside the Company’s control. Such factors include, without limitation: the Company’s Chapter 11 bankruptcy filing; general economic conditions; changes in the retailing environment and consumer spending habits; relationships with vendors and the availability of merchandise; competition from existing and potential competitors; the amount of merchandise markdowns; loss or retirement of key members of management; increases in the costs of borrowings and unavailability of additional debt or equity capital; impact of our substantial indebtedness on our operating income and our ability to grow; inclement weather and natural disasters; the cost of labor; labor disputes; increased healthcare benefit costs; and other costs and expenses. This list of factors is not intended to be exhaustive.
MWW Group
Rich Tauberman, 202-585-2282
rtauberman@mww.com
or
Susan Kenney, 201-964-2392
skenney@mww.com
