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Linens May Liquidate

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A possible deal for Linens 'n Things has evaporated. Now the company may face liquidation, possibly not even surviving the holiday shopping season.

Cerberus Capital Management last week abandoned a prospective plan to buy the struggling home-furnishings chain, which filed Chapter 11 in May after being taken private for $1.3 billion in 2005 by billionaire Leon Black's Apollo Capital Management, sources said.

In turn, Linens 'n Things may take liquidation bids as soon as mid-October, paving the way for chainwide going-out-of-business clearances in November and December, sources said.

For six weeks, buyout giant Cerberus had been weighing a plan to scoop up the chain at a rock-bottom price, downsize it and return it to profitability, sources said.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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