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LNT reports additional losses

Clifton, N.J. — In the third month of its bankruptcy, Linens ’n Things continued to report challenged sales, net losses and negative cash flow.

In documents filed with the Securities and Exchange Commission today, the retailer said it lost $20.6 million, before reorganization expenses, for the month ending July 26, on revenue of nearly $112 million. Including the costs associated with its bankruptcy, LNT lost $28.1 million for month.

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.


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