NEW YORK (Reuters) – A group of liquidation firms including Hilco and Gordon Brothers have stepped forward as the lead bidder for the assets of Linens ‘n Things, according to court documents.
A joint venture that comprises Hilco Merchant Resources, Gordon Brothers Retail Partners, Hudson Capital Partners, SB Capital Group, Tiger Capital Group and Great American Group made the stalking horse bid, according to court documents filed Oct. 8.
A stalking horse bid is the first offer made for a bankrupt company’s assets from a buyer chosen by the company. That first bid is the one against which all later bids are compared.
The bankrupt U.S. home furnishings retailer is trying to hurry closing its remaining 371 stores, and has asked Bankruptcy Judge Christopher Sontchi for permission to hold an auction for the company on Oct. 14. Going-out-of-business sales would begin two days later, according to court documents.
The stalking horse group has guaranteed that Linens ‘n Things will receive 95.1 percent of the aggregate cost value of the merchandise included in the sales.
Bed Bath & Beyond Inc (BBBY.O) competes with Linens to offer bedding, cleaning supplies and home furnishings. Bed Bath shares were down 62 cents at $26.93 in late-afternoon trading. (Reporting by Chelsea Emery; Editing by Gary Hill)