Linens 'n Things will liquidate

Linens 'n Things has given up trying to find a buyer who will continue operations and will close its remaining 371 stores after close-out sales.

The company had agreed to a $475-million "stalking-horse" bid for Linens 'n Things' assets from a joint venture of several investment groups specializing in liquidation. The retailer had hoped to court a buyer that would keep the retail chain running. It called off the auction, which was scheduled for yesterday, after it failed to draw any other qualified bids, court documents stated.

My daughter is very excited and is keeping her eye on the store in River Forest, Illinois where, she reports, they are currently offering 40-60% off.

Steve & Barry's may have timed their bankruptcy just right. It's going to be tough to find anyone willing to put forward large amounts of money to rescue a floundering retailer right now. A couple months ago, when it was S&B's turn -- yes; a few months in the future, when things settle down a bit -- perhaps. But Linens 'n Things needed to find an angel now, and even angels can't get credit today.

Martha leaving Kmart 2010

Martha Stewart's licensing deal with Kmart, which at one point was generating $1 billion anually in sales, expires in January 2010, and it's pretty clear it won't be renewed.

“Right now we do not believe Kmart is our likely partner going forward,” president and ceo Susan Lyne said during the Bank of America 2008 Consumer Conference here. “However, as of January 2010 we can be in any other mass retailer,” and the company is free to pursue new deals now, she added.

If that wasn't clear enough, she added this zinger, "What is important for us is to be with someone who is investing in their business.”