Linens 'n Things to begin liquidating stores

Linens 'n Things, victim of a widespread credit crunch, will begin liquidating its remaining stores as early as Thursday after the bankrupt home goods retailer failed to find a buyer that will operate the company as a going concern.

The Delaware bankruptcy court had planned to hold an auction for interested bidders on Tuesday, after a group of liquidators that included Hilco Merchant Resources had made a preliminary $475 million offer. But no other buyers submitted qualified bids and the auction was canceled, according to court documents filed late on Monday.

The court is expected to approve the stalking horse bidder's offer and liquidation sales are expected to begin on October 16, said James Schaye, president and chief executive officer of Hudson Capital Partners, which is a member of the liquidator group.

"It's a straight going-out-of business liquidation sale," said James Schaye, president and chief executive of Hudson Capital Partners, one of the members of the investment group buying the company's assets. He expects the process will take about 11 weeks.