Linens Holding Co., the parent of Linens ‘n Things, said it will continue to honor gift cards in all of its stores, despite last week’s filing for Chapter 11 bankruptcy protection.
The court gave its go-ahead to let customers continue redeeming the cards, as well as rewards certificates and coupons, the company said.
“LNT gift cards are a popular item for our guests and an important part of our business,” said David Coder, president and chief operating officer, in a statement.
The company also has no plans to change its rebate policy or its wedding registry business, Coder said.
Linens ‘n Things follows other retailers, including Bombay Co. and The Sharper Image, which have filed for bankruptcy in the last year.
The decision to file Chapter 11 was driven mostly by the impact of the current economic downturn on the firm’s operation. The May 2 filing lets Linens n’ Things restructure and close under-performing stores while protecting the chain from creditors.
As part of a financial restructuring, 120 of its 589 U.S. stores will be shuttered. The retailer’s Canadian stores, which are among the strongest performers in the chain, are not included in the filing.
There are no plans for a similar filing in Canada, the company said.
“The decision to close stores was difficult but necessary to improve LNT’s financial position and place the company on a firmer financial footing as we move forward,” Robert J. DiNicola, executive chairman, said in a statement. “We will be able to realize important cost savings and operational efficiencies as a result of this process, allowing us to serve all our constituencies more effectively.”
Investment firm Apollo Management acquired the company in 2006 for $1.3 billion
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