Linens 'N Things considers restructuring
CLIFTON, N.J. Linens 'N Things has announced that it has decided to defer the approximately $16.1 million quarterly interest payment due on April 15 to the holders of its Senior Secured Floating Rate Notes due 2014. It also announced that it is in discussions with an ad hoc committee of holders of the Notes regarding a restructuring of the company’s capital structure. According to the company, its lenders under the company’s senior asset-backed revolving credit facility are supportive of efforts toward a consensual restructuring.
“Despite the strides that LNT has made to improve the operational side of its business over the past two years, these measures have not produced acceptable financial results. The increasing deterioration of the credit markets and the residential real estate meltdown, both stemming from the turmoil in the subprime mortgage market, and the resulting downturn in consumer spending, especially in the home sector, have combined to create additional and acute financial challenges for the company and the retail sector as a whole,” said Robert DiNicola, chairman and ceo.
Linens 'N Things reported a net loss of $62 million for the fourth quarter of 2007, compared with a net loss of $22.5 million in the prior year period.