Linens-N-Things

case study

Provided a holistic solution for Linens ‘N Things, including a first-of-its-kind e-commerce disposition and the re-imagining of the brand.

summary-client LINENS-N-THINGS

By The Numbers

Generous fee-based remuneration with significant success-based bonus

As part of Linens ‘N Things’ wind down, we provided a two-phase solution beginning with the total liquidation of hard assets via traditional and digital channels, followed by a brand restructuring initiative to unlock value in the intellectual property and provide new life to a well-loved brand.

Linens Holding Co. was a leading home furnishings retailer that filed bankruptcy and wound down operations due to sales under-performance and overextended real estate obligations.

As part of a joint venture, Gordon Brothers offered an equity guarantee for all inventory within the 371 stores, as well as a separate guarantee for the online inventory, which was stored in a third party facility. As part of the $1.2 billion total disposition, we pioneered a first-of-its-kind online going-out-of-business sale, bypassing the difficulties of transferring web inventory to stores. We also exclusively managed the real estate disposition of all stores and a 278,757 square foot distribution center.

With strong faith in the inherent value of the IP even amidst the company’s structural wind-down, we bought the brand and undertook a prolonged initiative to restore it.  Unfettered by the hard assets, we re-engineering the business model into an Internet-only business that allowed for continued service to the brand’s loyal following.

The project was hugely successful and resulted in the estate receiving proceeds that exceeded expectations. In 2013 the joint venture sold the brand to Galaxy Brand Holdings. The Linens ‘N Things website continues to operate successfully with growing revenues and customer volume. The brand value has been preserved and maintained through a new licensing venture to a retail operator in Canada.