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MoneyTalks - > Money Talks -> Another opaque business decision
Another opaque business decision
Location: 9300 Rosedale Highway, Bakersfield, CA

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Sometimes you just can't tell why large companies do the things they do, as we witnessed in Linens 'n Things' big announcement Friday.

That's the day the home furnishings and bedding retailer said it had filed for Chapter 11 bankruptcy protection (that's the one where the company gets to continue operating, free from debtor harassment, while it reorganizes its finances). No wonder there: The economy's down, and stores dependent on people buying and outfitting their homes are sluggish these days.

What's hard to understand is why the company chose to close the stores it did. Of 120 or so closings nationwide, 27 are in California -- and the one at 9300 Rosedale Highway isn't among the ones set to shut down, a spokeswoman for the Clifton, N.J.-based chain said Monday.

Clearly sales numbers would play into the company's thinking. But what drives that? Some folks have suggested that newer stores -- the ones with better merchandise and a more welcoming design -- are the ones staying open. So why not come out and say that, if that's the case?

All we got from company spokeswoman Susan Kenney was, "I can't say why that store wasn't chosen" to close. We honestly think it's the case that she hasn't been informed.

The company doesn't have to explain itself. For one thing, the company's no longer public (the Associated Press said in a report Friday that New York investment firm Apollo Management took the company private in 2006 for $1.3 billion). Private companies aren't generally obliged to discuss their decisions.

Still, we'd sort of like to know.

Posted in these Groups:
Topics: economy, business, retailers, linens, furnishings, bedding, Linens 'n Things
posted by MoneyTalks on Monday, May 5, 2008 at 10:57 AM
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