Linens N' Things was one of the first retail-sector casualties of the recession, with the home-goods chain filing for bankruptcy protection last May. However, fans of the retailer now have cause to celebrate -- Hilco Consumer Capital and Gordon Brothers Brands LLC announced today that they will relaunch Linens N' Things early this year, after a joint venture between the two firms acquired the chain's intellectual property rights.

Continue reading Bankrupt retailer Linens N' Things to relaunch under new ownership

Bankrupt retailer Linens N' Things to relaunch under new ownership originally appeared on BloggingStocks on Fri, 06 Feb 2009 13:45:00 EST. Please see our terms for use of feeds.

Continue reading Bed Bath and Beyond (BBBY) Q3 earnings preview

Bed Bath and Beyond (BBBY) Q3 earnings preview originally appeared on BloggingStocks on Tue, 06 Jan 2009 18:40:00 EST. Please see our terms for use of feeds.

After the turn of the calendar page, quarterly reporting resumes this week. Analysts surveyed by Thomson Reuters are expecting to see strong earnings growth from fertilizer producer Mosaic Co. (NYSE: MOS), biotech giant Monsanto Co. (NYSE: MON), and Neogen Corp. (NASDAQ: NEOG), which produces food safety and animal health products. Mosaic's estimated earnings per share of $1.43 for the fiscal second quarter would be 41.9% higher than a year ago, and its revenue estimate of $3.0 billion is 36.7% higher. Monsanto's $0.59 per share projection for the fiscal first quarter is 22.0% higher and sales of $2.4 billion are up 14.9%. And Neogen's second-quarter $0.25 per share would be 12.0% higher, while its sales of $32.3 million are up 18.6%. All three have tended to beat expectations in recent quarters, and all three have buy recommendations from a consensus of analysts. Mosaic and Monsanto have recently announced dividends, and their share prices have fallen 62.3% and 39.0%, respectively, from a year ago. The share price of Neogen, which recently announced share buybacks, is only 0.8% lower.

Other companies expected to post modest earnings gains when they report this week include education company Apollo Group Inc. (NASDAQ: APOL), WD-40 Co. (NASDAQ: WDFC), and wine and spirits maker Constellation Brands Inc. (NYSE: STZ).

Continue reading The week in preview: Family Dollar, Bed Bath & Beyond, KB Home, and others

The week in preview: Family Dollar, Bed Bath & Beyond, KB Home, and others originally appeared on BloggingStocks on Sun, 04 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

Voting continues in our Best & Worst in Money 2008 feature, and it looks like early favorites include falling gasoline prices, Wal-Mart, Joe the Plumber, and former New York Governor Eliot Spitzer. Did they get your vote?

Close races include the Breakout Person of the Year, in which vice presidential contender Sarah Palin and Olympic gold medal winner Michael Phelps duke it out for first place, while poor Neel Kashkari, who is in charge of the U.S. Treasury's financial relief funds, is in last place with only about 6% of the vote.

The Most Disturbing Consumer Trend is another close race, with plunging retirement accounts and falling home values virtually a tie. It's also a very close race between Wall Street and Kmart for Most in Need of a Makeover. Not much interest in making over Starbucks (NASDAQ: SBUX), however, as it has only about 4% of the vote in that category.

Lower fuel prices are clearly the most popular Silver Lining to the Recession with about 62% of the vote so far. Joe the Plumber, with 57% of the vote, has a clear lead over distant second place Rev. Jeremiah Wright as the Most Notable 15 Minutes of Fame. And disgraced New York Governor Eliot Spitzer leads the Biggest Fall from Grace category with about 56% of the vote.

Continue reading Best & Worst in Money 2008: Early voting results

Best & Worst in Money 2008: Early voting results originally appeared on BloggingStocks on Tue, 16 Dec 2008 16:36:00 EST. Please see our terms for use of feeds.

This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

As the economy slides into recession and struggling retailers and restaurants begin to lose the good fight, its inevitable that some favorites will disappear. Among those leaving us in 2008 are retailers Linens 'n Things, Mervyns, Sharper Image, and Steve & Barry's.

I always liked Linens 'n Things for its reasonably priced, reasonably stylish offerings of such functional things as kitchenware and linens, not to mention the occasional useless but chuckleworthy items such as dancing Santas and big plastic barrels of pretzels. But I admit that I didn't shop at the New Jersey-based big-box retailer very often. After Linens 'n Things went private in 2006, the chain's expansion was offset by declining same-store sales, and the company operated at a loss. It filed for Chapter 11 bankruptcy in May 2008, but in October said it would liquidate all remaining stores.

Being from the midwest, I've never shopped at a Mervyn's. It appears to have been a store with a bit of an identity crisis. It was acquired by Dayton Hudson in 1978. Beginning in the '80s, Mervyn's tried unsuccessfully to expand into Georgia and Florida. From 1996 to 2001, the name was changed to Mervyn's California to identify with its West Coast roots. Then in 2004 , Mervyn's was sold to private investors. Store closings became a regular occurence. In July 2008, the company filed for Chapter 11 bankruptcy. More store closings followed, and in October the company filed for Chapter 7 bankruptcy and began to liquidate its stores.

Continue reading Best & Worst in Money 2008: Retail store we'll miss the most

Best & Worst in Money 2008: Retail store we'll miss the most originally appeared on BloggingStocks on Sun, 07 Dec 2008 14:40:00 EST. Please see our terms for use of feeds.

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 and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market He is also the founder of BizEquity, a valuation website

Linens 'n Things goes bye-bye originally appeared on BloggingStocks on Wed, 15 Oct 2008 14:20:00 EST. Please see our terms for use of feeds.

The New York Times reports that Bennigan's -- an "Irish-themed bar and grill" -- closed its 200 U.S. sites, throwing hundreds out of work. When you combine gasoline prices over $4 a gallon, higher food prices, and declining incomes, people change their economic behavior. That is particularly true when people can no longer use the equity in their homes to cover the gap between what they want and what they can afford.

In April, I posted on the recession diet, which is the way that consumers are coping with the squeeze on their budgets. They have staycations, they don't drive to or shop at the mall, they eat at home, and they buy more pasta and consume fewer vegetables and steaks.

It's great news that gasoline prices have come down recently -- in some cases as much as 20 cents a gallon. But it's not clear whether that will be enough. In any case, the Times provides a nice list of those restaurants and retailers that have filed for bankruptcy in the wake of the recession diet:

• Bennigan's
• Steak & Ale
• Mervyn's, mid-tier department store chain
• Steve & Barry's, a fashion retailer
• Linens 'n Things
• Sharper Image

I think there will be more such bankruptcies and I plan to look at publicly traded companies in these industries to see which are the likeliest candidates. If you have ideas you'd like to analyze, please post your thoughts below.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Recession diet bankrupts restaurants, retailers originally appeared on BloggingStocks on Wed, 30 Jul 2008 11:47:00 EST. Please see our terms for use of feeds.

Bloomberg News reports that vacancies are rising fast. It notes that the average vacancy rate at neighborhood and community malls rose to 8.2%, up from 7.3% in 2007 and the highest level since 1995. And at regional and super-regional malls, vacancies increased to 6.3%, up from 5.6 % in 2007.

Sam Chandan, chief economist of research firm, Reis Inc., told Bloomberg that the amount of retail space being abandoned, "consistent with store closures, is at its highest level in almost 28 years." What's going on? Retailers --such as Linens 'n Things, Sharper Image, Lillian Vernon, Bombay and Levitz Furniture -- have filed for bankruptcy.

Why so many bankruptcies? It could be that with housing prices down 15% and 3 million mortgages in foreclosure people can't borrow the money they formerly used to purchase the goods that these malls sell. With consumer demand dropping and vacancies on the rise, it's surprising that rents are increasing at all.

Continue reading Mall vacancies and store closures at 28-year-high

Mall vacancies and store closures at 28-year-high originally appeared on BloggingStocks on Mon, 07 Jul 2008 09:57:00 EST. Please see our terms for use of feeds.

Linens 'n Things declares bankruptcy originally appeared on BloggingStocks on Fri, 02 May 2008 11:55:00 EST. Please see our terms for use of feeds.

Back in February 2006, Apollo Management purchased Linens 'n Things for about $1.3 billion. At the time, it looked like a sensible deal. After all, the company has a strong retail format (for home textiles, housewares and so on). What's more, there are over 500 stores in 47 states.

However, with the slowing economy - especially in the real estate sector - things have turned sour. In fact, according to the Wall Street Journal [a paid publication], it appears that Linens is planning a bankruptcy filing and has hired Conway Del Genio Gries, which is a top advisor on restructurings.

For Apollo, this will certainly be a black eye. Keep in mind that the firm has recently filed to trade on the NYSE. Plus, if there is a bankruptcy, it is likely to mean a significant reduction in the equity value of Apollo's investment in Linens.

When creditors sense trouble, things can get particularly bad for retailers. Basically, they will often hold back on shipments or require cash upfront. Plus, Linens has a $15 million debt payment due on Tuesday. And if it doesn't pay it, it looks like that will be the day the company will file for bankruptcy.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Linens 'n Things: A black-eye for private equity originally appeared on BloggingStocks on Fri, 11 Apr 2008 12:35:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the matter, the Wall Street Journal reported that home-furnishings retailer Linens 'n Things, acquired by Apollo Management in 2006 and caught by a shrinking housing market and increasing debt load, is expected to file for Chapter 11 bankruptcy-court protection by Tuesday.

• The Detroit News reported that Delta Air Lines Inc (NYSE: DAL) pilots have agreed to a contract revision that clears the way for Delta and Northwest Airlines Corporation (NYSE: NWA) to announce a merger next week, according to sources close the matter.
• The United Auto Workers union notified General Motors Corporation (NYSE: GM) of its deadline to strike three factories in Michigan if the two are unable to agree on local labor pacts, the Detroit News reported.
• The Business Standard reported that Toyota Motor Corporation (NYSE: TM) is planning to invest Rs 1,400 crore in Toyota Kirloskar Motor, its India subsidiary to set up its second plant in the country.

Newspaper wrap-up: Delta pilots agree to changes, clears way for merger originally appeared on BloggingStocks on Fri, 11 Apr 2008 09:15:00 EST. Please see our terms for use of feeds.