Retailer Linens ‘n Things filed for bankruptcy and secured $700 million in debtor-in-possession financing from General Electric Credit, which will allow it to pay for new orders and provide working capital. The chain said it would continue to operate during reorganization. As part of the filing, Linens will close 120 stores, but will continue to operate in Canada, where it said it will not file a corresponding bankruptcy action.
The other immediate change at what had been a 589-unit chain is the status of CEO and President Robert DiNicola. As part of the filing, he will become executive chairman and Michael F. Gries, a restructuring consultant and co-founder of Conway Del Genio Gries & Co., will become interim CEO and chief restructuring officer.