Linens 'N Things troubles lead to talks with vendors over supply

CLIFTON, N.J. Linens 'N Things said on Friday that while it seeks to restructure its debts, it has formed an ad hoc committee of its major vendors in order to discuss how to ensure an uninterrupted supply of products.

The retailer is in talks with a committee of its debtholders about altering its capital structure and said that similar discussions were under way with the vendors, as well.

The Wall Street Journal reported that the company could file for Chapter 11 bankruptcy protection and early last week, Linens 'N Things reported that it had delayed a $16 million interest payment and that its lenders had agreed to delay exercising their right to stop making loans to the company.

The company claims that its problems have been caused primarily by the credit crunch, housing downturn and consumer spending slowdown in the United States.

Ceo Robert DiNicola said in a statement that the company was evaluating its options and exploring "several alternatives in our efforts to recapitalize the company."