LINENS UNIT BIDDER
While Linens ‘n Things stores across the US look poised for liquidation, a potential bidding war is heating up for the struggling retailer’s small but profitable Canadian chain.
Lord & Taylor owner Hudson’s Bay Trading Co., which is controlled by New York real estate firm NRDC Equity Partners, is in talks to buy the 37 stores Linens ‘n Things operates in Canada, sources told The Post.
Linens ‘n Things also has been negotiating with Hilco Consumer Capital, a Toronto-based private-equity firm, on a possible plan to save the Canadian stores from liquidation, sources said.
As first reported by The Post in April, Linens ‘n Things began shopping its Canada stores to potential buyers weeks before filing for Chapter 11 in May.
The Clifton, NJ-based retailer – whose chain of nearly 600 locations had been taken private for $1.3 billion in 2005 by billionaire Leon Black’s Apollo Management – hired New York-based investment bank Financo to explore strategic alternatives.
Last month, The Post reported that a deal to sell Linens to giant buyout firm Cerberus Capital Management had fizzled.
While archrival Bed Bath & Beyond has examined the Canada locations, it is expected to stick with its traditional strategy of building its own stores, sources said.
Hudson’s Bay operates the Canada-based Home Outfitters chain, a local competitor to Linens ‘n Things.
It’s not yet clear whether Hudson’s Bay would convert the Linens ‘n Things stores to Home Outfitters, sources said.
Hudson’s Bay recently has made bold moves to assert dominance in Canada’s home-furnishings market. In March, NRDC bought the Fortunoff jewelry-and-housewares chain. This summer, NRDC bought the centuries-old Hudson’s Bay department-store chain and said it will add Fortunoff boutiques to some of those stores.