In late 2005, Apollo Management Group agreed to pay $1.3 billion for Linens 'n Things, taking the company private. It proved to be horrible timing, as the housing market began its dramatic decline.
And the credit markets eventually crumbled, making the investment unworkable. In fact, the company had to file for bankruptcy in May.
Linens 'n Things tried to sell itself. Unfortunately, there were no bidders willing to take on the risks. So, this week the company will undergo a liquidation process.
No doubt, this is a big fall. Last year, Linens 'n Things posted revenues of $2.8 billion and had 589 stores across 47 states. There will also be a real impact on the employee base – which was 17,500 last year – as well as the 1,000 suppliers.
At the same time, expect some bargain-basement prices at local Linens 'n Things stores over the next few weeks.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Back in late 2005, 
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