Linens ’n Things files chapter 11
Three stores in region to close
By BRYAN F. YURCAN
Linens ’n Things has filed for voluntary
bankruptcy and is shutting down 120 underperforming
stores, including three in the lower Hudson Valley
region.
The stores to close in Westchester County are a 57,000-square-foot
location in the Midway Shopping Center on Central Park
Avenue in Scarsdale and the 44,000-square-foot one
in the Cortlandt Town Center on Route 6 in Mohegan
Lake. The company is also shutting its 44,000-square-foot
store at the Woodbury Town Center in Harriman.
The company has secured $700 million in debtor-in-possession
financing from General Electric Capital Corp.
Linens ’n Things, which operated 589 stores in 47 states
and seven provinces across the United States and Canada,
had sales of about $2.8 billion last year. The company
said its Canadian stores are among the strongest performers
in the chain.
“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 of the retail chain.
“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. At the store level, we remain
fully operational and ready to serve our guests.”
The company did not indicate when the stores would
close.
David Landes, a principal with the real estate brokerage
firm Royal Properties Inc. in Bronxville, said the
two Westchester locations should not be difficult to
market.
“Central Avenue is the hottest retail location in Westchester
County, and there’s not a lot of big block space available
there,” he said. “If you’re a big block anchor and
you’re looking for north of 30,000 square feet, this
is a place you have to be.”
Though not as heavily trafficked as Central Avenue,
Landes said the Route 6 corridor which serves much
of the retail needs of northern Westchester County,
is also an ideal location for a big box retailer.
“They’re both very, very good locations,” he said.
“There is strong traffic, and strong demographics.”
Landes said the sagging economy may have some effect
on marketing the two spaces, but it probably won’t
hinder any potential deals.
“It won’t be hard to market,” Landes said of the two
spaces.
(Bob Rozycki contributed to this story.)
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