Linens 'N Things 4Q Loss Widens
Clinton, N.J. Linens 'n Things on Thursday said its fiscal fourth-quarter loss widened, adding that it planned to cut costs, including reducing staff.
The company was acquired by investment firm Apollo Management in 2006.
Loss for the quarter ended Dec. 29 totaled $62 million vs. $22.5 million in the year-ago quarter.
Revenue rose less than 1% to $962.9 million from $956.8 million in the fourth-quarter last year. Meanwhile, same-store sales fell 1%.
For the fiscal year, the loss widened to $242.1 million from $154.4 million in 2006, which includes a period between Jan. 1 and Feb. 13 before the Apollo acquisition was complete.
Revenue fell nearly 1% to $2.79 billion from $2.82 billion last year.
Company parent Linens Holding Co. said it is attempting to turn around its business in a "highly leveraged" situation amid a difficult retail environment.
It plans to cut costs including store-staffing costs, corporate overhead expense and other expenses.
It also plans to cut marketing expenses and reduce inventory purchases and could close stores to reduce occupancy costs.