Hilco, Gordon Bros to buy LNT name, trademarks
January 22, 2009,
Wilmington, Del. – A joint venture between Hilco Consumer Capital and Gordon Brothers Brands will pay $1 million for Linens ’n Things’ name, internet domain names, brands and other intellectual property.
“We see the potential as unlimited, especially with the iconic nature of the brand. It’s up to us to provide the right experience, and there’s a plethora of opportunity,” added Brad Snyder, principal and managing director of Gordon Bros. Group.
While the deal will not close until Jan. 26, “it is the No. 2 brand in the country for home. The store within a store concept could see 10,000 to 15,000 square foot sites, and this year we plan for a new website. Monday (Jan. 26) the GOB sign will come down and we will have [our own] merchandising team or somebody else to develop the site,” Salter remarked.
“It’s a great concept but it needs to be repackaged,” Salter commented. “And LNT did $300 million in Canada and it was working really well,” he added.
The transaction, which was approved by U.S. Bankruptcy Court for the District of Delaware on Jan. 16, includes LNT’s software and technology, advertising and marketing materials, databases, supplier lists, business and marketing plans and proposals. The bankrupt Linens ’n Things chain will continue to use the name under a royalty-free licensing arrangement until it has completed its liquidation.
The Hilco/Gordon Brothers venture – acting as management of the new intellectual property assets entity – will receive a $300,000 transaction fee at the close of the deal as well as a $350,000 annual management fee.