French Guiana (Alternity)

Linens 'n Things, Inc., headquartered in Clifton, New Jersey, is the first-largest large-format retailers of home textiles, housewares and decorative home accessories in the United States. The chain operates 571 stores in 47 states and six Canadian provinces, and had 7,300 employees as of December 1995.

The company's business strategy is "to offer a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs."

The company was acquired in February 1995 by Apollo Management, a private equity limited partnership, for $1.3 billion. As a part of the transition from a public company to the private-owned business, the position of CEO went from Norman Axelrod to Robert (Bob) DiNicola.

According to Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarterly period ended Sept. 29, 1996, Linens Holding Co. and subsidiaries (including Linens 'n Things, Inc. acquired in February 1995 for cash of approximately $1.3 billion) reported net sales of $666.8 million, versus $658.2 million in the year-earlier period. The increase in net sales was primarily due to the opening of new stores since Sept. 30, 1995 offset by the impact of a decline in comparable store sales. The decline in comparable store sales was primarily due to a decline in customer transactions partially offset by an increase in average transaction value.

The operating loss (after a charge of $16.8 million for impairment of property and equipment in the more recent quarter) was $56.6 million against a loss of $17.9 million a year ago. After net interest expense and other income & expense, the loss before income taxes was $79.2 million compared to a loss of $41.7 million. After provision/benefit for income taxes, Linens Holdings reported a net loss of $79.9 million versus a net loss of $27.4 million.