Linens ‘n Things acquired by Galaxy Brand Holdings; poised for comeback
New York -- The once bankrupt and liquidated retailer Linens ‘n Things is poised for a comeback following an acquisition of the brand by Galaxy Brand Holdings.
Linens ‘n Things was a leading specialty retailer that rivaled Bed Bath & Beyond in the home goods and housewares space, at one point operating 571 stores with annual sales of $2.7 billion. However, in 2008, Lines ‘n Things filed for bankruptcy and in February 2009 the company’s assets, including inventories and real estate, were disposed of by Hilco Global, Gordon Brothers Group and other partners. The intellectual property was subsequently acquired by a joint venture including Hilco Global, Gordon Brothers Group and Infinity Lifestyle Brands, a company that specializes in revitalizing brands. Those firms operated Linens ‘n Things as an online retailer of home goods, providing a wide array of home merchandise at value-oriented prices directly to consumers.
Following Monday’s acquisition of Linens ‘n Things by Galaxy, the retailer is poised to entered a new growth phase with substantial new financial backing and indications that the brand may return to some form of physical retailing.
“Linens ‘n Things enjoys a rich history of providing consumers with a broad assortment of high-quality, value-priced home products. We plan to leverage this heritage to connect with consumers by offering Linens ‘n Things branded products, and by re-establishing the brand as a premier home destination both in-store and online,” said Abe M. Hidary, VP of corporate development at Galaxy Brand Holdings.
The acquisition appears to be occurring at an opportune time given the rebound that has occurred in home goods, a favorable demand outlook going forward and the financial backing of Galaxy. Although founded in 2011, Galaxy received an injection of capital in May of this year when private equity firm the Carlyle Group acquired a majority interest in the company. Galaxy’s other holdings include brands such as AND1, Avia and Nevados with annual retail sales of more than $700 million.
With regard to Linens ‘n Things, Hilco chairman and CEO Jeffery Hecktman said the sale to Galaxy marked another successful turnaround of a valued brand.
“We are excited for Galaxy to continue the growth the brand has experienced throughout the past few years and build upon the brand’s strong history and resonance with consumers,” Hecktman said.
“We’ve been proud stewards of the Linens ‘n Things brand for the past four years and believe that this sale takes place at an exciting time for Galaxy, which will undoubtedly have enormous success taking it to the next level,” said Kenneth S. Frieze, president of Gordon Brothers Group.