LNT Q1 Loss Widens
May 19, 2008,
Linens 'n Things reported a net loss of $130.6 million for the first quarter ended March 29, 2008, vs. a net loss of $58.2 million one year ago.
Based on preliminary results, which LNT cautioned could be amended upon further review, first quarter gross margin was up 180 basis points to 39.2% of sales from 37.4% in the year-ago period. EBITDA (earnings before interest, income taxes, depreciation and amortization) was negative $38.2 million compared to negative $33.0 million in last year's first quarter.
LNT first quarter sales of $566.9 million were down 0.8%, with a comp decline of 5.7%. The retailer filed for Chapter 11 bankruptcy protection May 2.
LNT said that the 30-day grace period it was granted to defer approximately $16.1 million in quarterly interest to the holders of $650 million in senior secured floating notes ended on the day of its filing, May 15, and that continued nonpayment could trigger an acceleration of various obligations under the notes.