Report: Linens 'n Things Paying Vendors Before Delivery
Clifton, N.J. Linens 'n Things Inc. is making a major effort to stock its retail stores, as the firm's CEO said he has just weeks to save the company from a bankruptcy filing, according to report in The Wall Street Journal.
The company said that it took the out-of-the-norm and costly move of paying its largest vendors cash even before the products arrive in stores, the report said.
In an interview with The Wall Street Journal, Linens' chairman and CEO Robert J. DiNicola called the emergency measure "temporary and certainly not ideal," but said it was what was needed "to keep vendors comfortable with shipping to us ... and gets us through our basic day-to-day requirements."
DiNicola said the measure gives Linens "a few weeks" breathing room as it tries to locate a substantial capital infusion, according to the report.
Without this new money, Linens ‘n Things will probably file for Chapter 11 bankruptcy protection, DiNicola told the publication.