Linens 'n things' has been losing money for a couple of years now, and just recently over these past months the company had difficulty keeping up with payments to its lenders and vendors. Linens 'n things' will have closed 120 stores by this year, will have left 470 stores that they sell their products in, 2,500 employees will lose their job. Before Linens 'n things' filed for bankruptcy they urged all their customers who had gift cards to use them immediately. However, having a gift card was a nice plus to those loyal customers, in addition to all of the store closing sales that occurred for about a month. Consumers having less money to spend was creating problems for the nation’s retailers. Linens 'n things' filing for bankruptcy is one of the first major retailers to go under during this slowing and weakening economy. In efforts to save the company, Linens 'n things' had reduced inventory purchases and store staffing to reduce its costs. However, the competition of other house good retailers, and the lack of money that consumers are willing to pay all contributed to the fall of the company. Linens 'n things' filing for bankruptcy is just one of many companies that have and will continue to struggle in this harsh economy.
two sources:
http://blogs.wsj.com/deals/2008/05/02/by-the-numbers-linens-n-things-bankruptcy-filing/
http://smartcanucks.ca/linens-n-things-to-file-for-bankruptcy-use-your-gift-cards-asap/
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