Linens ‘n Things has set a Jan. 30 special shareholder meeting to vote on the $1.3 billion sale of the company.
Shareholders will be asked to approve the retailer chain’s sale to a new, unnamed company controlled by Apollo Management, for $28 a share. The sale, announced in November, would merge Linens ‘n Things into the new company; the board of directors approved the merger in November (Xtra Nov. 9).
The offer is contingent on fourth-quarter sales: If sales are down more than 6%, or 2005 earnings are less than $140 million, the deal is off.
Linens ‘n Things’ third-quarter sales fell 3.8% to $629.3 million, because the chain’s fashion message weakened its value perception among shoppers, and store traffic fell. Sales for the first nine months were flat, down 0.7%, at $1.77 billion. Its 2004 sales were $2.7 billion.
Clifton, NJ-based Linens ‘n Things filed with the Securities & Exchange Commission on Dec. 27 to set the Jan. 30 meeting. The chain has 500 stores in 45 states.
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