LNT reports additional losses
September 9, 2008,
Clifton, N.J. — In the third month of its bankruptcy, Linens ’n Things continued to report challenged sales, net losses and negative cash flow.
Linens reported a merchant margin — profit after markdowns and allowances but before supply chain expenses — of $54.1 million, or 48.3% of sales, compared to 48.8% during the month-earlier period.
Including supply chain expenses and buying, product development and shrinkage — what the retailer referred to as gross profit — its margins were $45 million, or 40.2% of sales, compared to 41.2% a month earlier.
Sales for the month ending June 28 were $138.2 million with a net loss of $12.4 million before bankruptcy expenses. Including those amounts, the net loss increased to $50.3 million in June.
LNT reported a negative net operating cash flow of $19.4 million for July, compared to $31.6 million in June.
It reported an additional $22.1 million draw down of its DIP credit facility.
Linens ’n Things proposed reorganization plan and disclosure statement are currently filed with the bankruptcy court . The company said it will attempt to emerge from bankruptcy by early February 2009.