Anna’s Linens files for Chapter 11; negotiating sale

Costa Mesa, Calif. — Anna's Linens Inc. announced it filed for Chapter 11 bankruptcy court protection on June 14. The retailer said it is working to negotiate a sale to DW Partners, a multi-strategy fund manager with $6 billion in assets.

The asset management firm would become “the stalking horse” bidder, and make the initial bid in a bankruptcy auction sale.

Anna’s Linens filed for bankruptcy in 1993 and emerged from the process in 1994. In its current filing, the company, which operates 268 stores, said it had up to $500 million in liabilities and up to $100 million in assets.