Linens ‘N Things, the former brick-and-mortar home goods chain turned e-commerce site, has been sold to Galaxy Brand Holdings, a New York-based holdings firm largely owned by private equity giant The Carlyle Group.
In an announcement made today, Gordon Brothers Group, Hilco Global and Infinity Lifestyle Brands, who jointly owned the intellectual property of Linens ‘N Things, announced that the brand’s IP assets were sold to Galaxy for an undisclosed amount, though an unnamed source close to the negotiations said the sales price was over $10 million.
In its prime, Linens ‘N Things operated 571 home textiles and housewares stores with total annual sales of $2.7 billion. But after a buyout by Apollo Management went sour in the face of recession in 2008 and heavy debt drowned the company, the retailer filed for bankruptcy, and was picked up by Hilco Global, Gordon Brothers Group and other partners for a reported $1 million in a fire sale. The new owners unloaded Linens ‘N Things inventory and real estate and re-launched the brand as a home merchandise e-tailer in 2009.
Galaxy hopes to be successful in taking the Linens ‘N Things brand to the next level, expanding its e-commerce business, possibly opening new stores, and producing private label housewares under the Linens ‘N Things brand to be sold in its own stores and in “shop-in-shops” in other retailers.
Abe M. Hidary, vice president of corporate development at Galaxy said, “Linens ‘N Things enjoys a rich history of providing consumers with a broad assortment of high-quality, value-priced home products. We plan to leverage this heritage to connect with consumers by offering Linens ‘N Things branded products, and by re-establishing the brand as a premier home destination both in-store and online.”
Galaxy is a brand development company that owns several major consumer brands, including the And1, Avia and Nevados athletic footwear brands. Its sales are approximately $700 million per year.
The Linens ‘N Things sale follows other successful company rescues like The Bombay Company, Polaroid and The Sharper Image which were purchased out of bankruptcy and relaunched post-recession.