Anna's Linens IPO Put On Hold

Chain to Bow Cannon in Limited Exclusive

By Staff -- Home Textiles Today, 1/9/2006 12:00:00 AM

Costa Mesa, Calif. — —

Costa Mesa, Calif. —Anna's Linens recently withdrew its common stock offering, which had been planned to take place before spring '06.

The company filed a registration statement with the Securities and Exchange Commission in May 2005, and had planned to hold its initial public offering in the fall. The impact of Hurricanes Katrina and Rita on some of Anna's Gulf Coast stores prompted the retailer to postpone the IPO to first quarter 2006. The company later informed the SEC of the decision to withdraw the filing.

The company may reconsider an IPO later in 2006, according to Alan Gladstone, chairman, president and CEO. “We're going to take a look at it [later] this year, but it was in our best interests” to withdraw at this time, he said.

More immediately, Anna's is looking ahead to the February opening of 12 locations it acquired from Plej's Linen Supermarket late last year and subsequently converted. This will place the expanding linen specialty retailer in two new states this year: North Carolina and South Carolina.

The former Plej's stores will be among 15 new units Anna's plans to open during the first quarter, which includes market entries into Orlando and Washington, DC.

Anna's will also be the first retailer to re-launch the Cannon brand, in a limited exclusive set to hit shelves during the first quarter.

Cannon has been out of U.S. stores for nearly two years following the July 2003 collapse of its then-owner, Pillowtex Corp. Now owned by investor consortium Official Pillowtex LLC, the brand has been repositioned and will re-launch at all 215 Anna's units in the coming weeks.

Anna's will stock both bedding and bath products produced under license by Li & Fung as well as bath rugs by Maples Industries.

“We are thrilled and honored to be the one reintroducing the brand,” Gladstone said. “It's a great value even if it didn't have the name on it,” he added. “It's what we like here — steak cheap, not cheap steak.”