Linens 'n Things chain facing liquidation

FLORENCE - It's business as usual at the local Linens 'n Things, but workers and customers await a decision Tuesday that may determine whether the company continues operations or enters liquidation.

Company officials requested Delaware Bankruptcy Judge Christopher Sontchi to hold an auction Tuesday and start clearance sales two days later, according to a Reuters news report.

"It's one of those processes where at any time, things can change," said Melissa Ludlam, general manager at the Florence store, one of 371 locations still operating.

The retailer, based out of Clifton, N.J., became private after Apollo Management purchased the company in 2006 for $1.6 billion. The management company, owned by billionaire Leon Black, is seeking a buyer of the retail chain that will allow it to avoid liquidation, according to the New York Post.

Until Tuesday's decision, the Florence store is still accepting inventory and setting up seasonal merchandise.

Ludlam said even though the Florence store was one of the company's top performers, the specialty retailer was hit hard by the recent economic turmoil.

Several messages to Linens 'n Things representatives at its headquarters went unanswered Friday.

The 56,000-square-foot Florence store opened in February 2001 and survived the first round of closings that shuttered 218 stores earlier this year.

Ludlam said this is a sensitive time for her 40 employees, which includes 25 part-time workers.

"Right now, my priority is my work staff. Regardless of what happens, we're going to be loyal and stay loyal to our customers," Ludlam said.

"We're praying for the best; we have a lot of great team members. The big picture is: Thanks for keeping us here."

Trevor Stokes can be reached at 740-5728 or trevor.stokes@TimesDaily.com.