Linens ‘n Things still open despite reports

Linens ‘n Things stores on the Central Coast apparently will remain open despite the company's filing last week for Chapter 11 bankruptcy protection.

Blaming the housing market downturn, the firm's operator, Linens Holding Company, announced the bankruptcy filing for its U.S. subsidiaries in the U.S. Bankruptcy Court for the District of Delaware.

“The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years,” said Robert J. DiNicola, executive chairman.

“We are making the strategic decision to use a Chapter 11 filing to proactively address our capital structure and ensure that our stores will remain well stocked while we work through the steps to align the capital structure of the company with the realities of today's business environment,” he added. “At the store level, we remain fully operational and ready to serve our guests.”

One-fifth of the 120 “underperforming” stores targeted for closure are in California.

But Santa Maria's store, at 2240 S. Bradley Road in the Crossroads Shopping Center, doesn't appear on that list.

Also not on the list are the Goleta store at 7055 Marketplace Drive, or the San Luis Obispo store at 1541 Froom Ranch Way.

California stores set to close include two in San Jose along with those in Corona, Chino, Riverside, Pasadena, Gilroy, Moorpark, Modesto and Tracy.

Linens ‘n Things officials also announced that bankruptcy court officials agreed that customers could continue to redeem gift cards in LNT stores. The firm's rebate and wedding registry programs will also continue.

Linens ‘n Things, with 2007 sales of approximately $2.8 billion, operated 589 stores in 47 states and seven provinces across the United States and Canada as of December. The firm's Web site is at www.lnt.com.

May 7, 2008