LNT names stalking horse for GOB sales
By Staff -- Home Textiles Today, 5/20/2008 1:10:00 PM
Wilmington, Del. — The federal bankruptcy court hearing on the store- closing bidding procedures for Linens ’n Things will resume tomorrow. Yesterday, LNT said Tiger Capital and SB Capital would partner to be the stalking horse to manage the going-out-of-business sales for about 120 stores.
The agreement calls for a breakup fee of $2 million if the stalking horse is outbid. Based on an estimated cost value of the merchandise of at least $128 million, the joint venture is guaranteeing that LNT will receive 92.72% of the cost value. After that and an additional liquidators’ fee of 5%, additional proceeds will be split 50/50 between LNT and the liquidators.
The auction is slated to be held May 29, with a court hearing to sanction the result the next day. LNT would receive a percentage of the proceeds. Most of the objections being brought involve real estate and shopping center interests, some of which are concerned that the GOB sales will be disruptive.
SB Capital is led by Jay Schottenstein, who also leads Retail Ventures. The Schottenstein family has long been at the forefront of the retail closeout and liquidation business in the United States.
Tiger Capital Group is a joint venture between longtime retailer Stephen Goldberger and The Nassi Group and the Alco Group. Goldberger is a former principal with liquidator and consultant Gordon Brothers Partners, former president and ceo of Hills Department Stores and former coo of Alexanders, both defunct retalers.
The two companies were the “S” and “T” in GGST, which purchased Pillowtex’s brands out of bankruptcy and later became Official Pillowtex LLC.
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