The Chronic Consumer

A couple days ago, I wrote that troubled retailer Linens ‘N’ Things managed to avoid bankruptcy by deferring approximately $16.1 million in interest payments. That apparently didn’t last, as I just read that the LNT bankruptcy is now OFFICIAL.

However, most people who have visited this site in the past couple of days have been searching for news of a Bed, Bath and Beyond bankruptcy, but that is still not the case. That chain does not appear to be in imminent trouble, and according to the AP report I read, will actually benefit from the Linens N Things bankruptcy since 50 percent of BBB stores are within 3 miles of LNT. One financial analyst believes that the LNT bankruptcy could boost Bed, Bath & Beyond stock by as much as 18 cents per share.

There’s no official word yet on how the LNT bankruptcy will affect their handling of gift cards. Just so you know, gift cards are considered loans to the company under Chapter 11 protection, so they will likely NOT be honored for much longer.

Good luck to all off you who were registered at LNT or have gift cards from them. I hope things work out!