Widely expected to declare bankruptcy today, Linen’s N Things instead decided to defer paying the interest that was due today that would have pushed it into Chapter 11. Your gift cards and the pile of 20% off coupons you use to test out new mulchers are safe…for now. [NYT]

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  1. lunchbox says:

    At least if you can’t use them and LNT, you can take them over to Bed, Bath and Bayond anyway.

  2. timida83 says:

    I work at BBB, and my manager was gloating about this last night at our “team huddle” (don’t even get me started). Jerks. I’m glad they haven’t declared bankruptcy just yet, if only because now he hopefully feels a little stupid for jumping the gun.

  3. Primate says:

    When I worked at BBY the managers were all giddy at the morning meeting because CC had let people go.
    I thought it was pretty low to be celebrating people losing their jobs.

  4. m4ximusprim3 says:

    Wait, can someone explain to me how this “defer your interest” thing works?

    Basically, If I have a large corporation and I’m in so much debt it’s going to force me to declare bankruptcy, I can just elect not to pay the debt till later and stay open?

    How will your creditors let you do this when it’s obvious you won’t be able to pay them back in x months anyway?

  5. lizardindy says:

    I’m not the least bit surprised LNT is in financial trouble, because my one and only shopping experience there made me want to hold a pillow over the store’s face until it stops breathing. I bought two pillows there a few weeks ago during a two-for-one sale. One pillow worked out, one didn’t. I tried to return the second pillow–and I was willing to take a store credit or something, because I knew it would be a weird return–but I was told I could not return the pillow at all, because I had paid nothing for it. It took a cash-register person plus two managers to come to this genius conclusion. No amount of polite arguing on my part would convince them that their deal essentially made both pillows half price. The first manager, who couldn’t think beyond what the computer told her, said the pillow “cost nothing,” that I paid “zero” for it. The second manager to arrive on the scene told me the pillow was “free” and “a gift.” So next time they’re having a two-for-one sale, just go to the Castleton, Indianapolis store, and tell the manager you want the “free, gift” item–you know, the thing that costs zero.

    The kicker is: If I’d taken no receipt, I would have gotten a store credit, no questions asked. And these were inexpensive pillows–losing a customer for life over a $16.99 pillow. Great business plan!