Gordon Brothers Group, Hilco Global and Infinity Lifestyle Brands have sold the Linens 'N Things intellectual property assets to brand development company Galaxy Brand Holdings, which is planning expanded e-commerce activities and brand extensions for the property.
While financial terms of the deal were not disclosed, the Wall Street Journal estimates that Galaxy Brand Holdings will pay more than $10 million dollars for the brand. Galaxy, which is owned by The Carlyle Group, has a portfolio that also includes AND1, Avia and Nevados.
"Linens 'N Things enjoys a rich history of providing consumers with a broad assortment of high-quality, value-priced home products,” says Abe M. Hidary, vice president, corporate development, Galaxy Brand Holdings. “We plan to leverage this heritage to connect with consumers by offering Linens 'N Things-branded products, and by re-establishing the brand as a premier home destination both in-store and online."
Before filing for bankruptcy in 2008, Linens 'N Things was a major retailer of home goods with 571 stores and $2.7 billion of annual sales. In February 2009, Hilco Global, Gordon Brothers Group and other partners disposed of the company's assets, including store and e-commerce inventory and real estate. The IP was then acquired by a joint venture including Hilco Global, Gordon Brothers Group and Infinity Lifestyle Brands for about $1 million and The Linens 'N Things brand was re-launched as an online retailer of home goods.
"This transaction marks another successful turnaround of a valued brand,” says Jeffery Hecktman, chairman and chief executive officer, Hilco Global, which is also responsible for the revival of the Polaroid and The Sharper Image brands. “We are excited for Galaxy to continue the growth the brand has experienced over the past few years and build upon the brand's strong history and resonance with consumers."
"The brand equity inherent in Linens ‘N Things is testimony to the power of our unique licensing platform," says Ike S. Franco, chairman, Infinity Group.