Linens ’n Things joins retail bankruptcy hit list

As a New York Times news analysis predicted about two weeks ago, and I blogged, Linens ’n Things has filed for bankruptcy.

And, it will be closing its Cedar Hill, Texas, store as part of its reorganization. That’s one of five Dallas-area stores, 10 in Texas, and 120 across the country it will shutter, while planning to stay in operation as a company during the bankruptcy process.

“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, Linens Holding executive chairman, in a statement.

“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,” DiNicola said.

The company has a total of 589 stores in the U.S. and Canada; Canadian stores are not affected by the filing.

Like Bombay and other home furnishing retailers, the recent housing crunch is believed to have contributed to Linens ’n Things' problems.