Linens 'N Things Officially Bankrupt

Linens 'n Things filed for Chapter 11 bankruptcy protection today, becoming the first of what will probably be a series of high profile bankruptcies of LBO's completed in the past few years. As I mentioned in my prior story on Linens 'n Things, the company has been on a money-losing tear for the past two years, pretty much since the day Leon Black's Apollo purchased the retailer for $1.3 billion in February 2006. Apparently, Apollo grew weary of supporting the retailer and chose the bankruptcy route, thus screwing the debt investors who were foolish enough to believe the company's cash flow could support a ridiculous debt burden. Linens 'n Things received $700 million in debtor-in-possession financing from GE Capital Corp, allowing the company to continue operations but further screwing the debt investors, as debtor-in-possession financing becomes senior to existing debt holders. If you still think it's a good idea to invest in Apollo's impending IPO after reading this story, please call me. I have some great condos in Miami to go that are perfect for an investor just like you!