LINENS EYES $$ HELP IN CANADA

Trying to raise cash as it braces for an expected bankruptcy filing, Linens ‘n Things is looking to sell its highly profitable chain of stores in Canada, The Post has learned.

The Clinton, NJ-based home-furnishings chain – which has struggled since it was taken private in 2005 for $1.3 billion by buyout king Leon Black’s Apollo Management – has been quietly shopping its chain of 40 Canadian stores for the past few weeks, sources said.

Among the interested buyers, sources said, is archrival Bed Bath & Beyond. While it has largely trounced Linens ‘n Things in the US market, Bed Bath & Beyond only opened its first Canadian store in Toronto in December.

Linens ‘n Things “has engaged a financial adviser engaged to explore strategic alternatives for the company,” spokeswoman Carreen Winters told The Post, referring to restructuring consultant Conway, Del Genio, Gries & Co.

“It would be premature, however, to speculate on what those alternatives might be,” Winters said.

Linens ‘n Things’ bid to sell the Canadian stores has bolstered speculation among some insiders that the company is looking to liquidate itself altogether rather than reorganize itself as an ongoing business.

While the Canada stores might fetch a healthy pricetag, selling them off could damage Linens ‘n Things’ strategic position against Bed Bath & Beyond.

Last year, Linens ‘n Things’ Canadian stores, which span markets in seven provinces, accounted for less than 7 percent of the retailer’s 589 locations, according to securities filings.

Yet, bolstered by a superior Canadian economy and – crucially – a lack of competition with Bed Bath & Beyond, the Canadian stores netted $255 million in sales – more than 9 percent of Linens ‘n Thing’s business.

Chainwide, Linens ‘n Things’ top 100 stores generate about a third of the company’s sales. In a prospective Chapter 11 reorganization, insiders estimate the company might close 20 percent of its chain.