Linens Could Liquidate During Holidays

Even in today’s economy, a 32% same-store sales drop looks kind of bad.That’s why, in part, private-equity firm Cerberus Capital Management has decided not to make a play for the beleaguered Linens ‘n Things, according to this New York Post article. This follows a May bankruptcy declaration and the closing of 120 stores, leaving it with about 475 units. The Post article says that same-store sales have plunged 32% so far this month after a 25% drop in August. Apparently Cerberus’ management thought that the investment to improve those sales was too high – and they were only planning on acquiring 100 stores. Now the retailer could face liquidation this holiday season…Ho! Ho! Ho!We assume that Bed Bath & Beyond will step in and take control of some of these store if Linens liquidates, or will another buyer step in? Certainly,landlords can’t be happy about this given the lack of expanding chains out there.