Anna's Linens is planning to file for bankruptcy in the upcoming weeks. The struggling home goods retailer has hired restructuring advisers, according to people close to the matter.
The company is in the process of selecting a lead bidder for some or all of its stores in a court supervised auction led by law firm Leven, Neale, Bender, Yoo & Brill LLP, the Wall Street Journal reported.
Anna's Linens has more than 300 stores, and recent expansion has weighed financially on the company, taking focus away from online sales. The company also filed for Chapter 11 protection in 1993 and emerged the following year.
In 2002, the retailer sold 25 percent of the company to buyout firm Rosewood Capital for $25 million. Last July, Anna's Linens secured $80 million in credit from Salus Capital Partners and Downtown Capital Partners.
Anna's Linens is not the only houseware store to feel the impact of increased consumer shopping online. Bed Bath & Beyond (NASDAQ:BBBY) reported a 4 percent drop in profits in the latest quarter, although its online sales were up 40 percent. According to a 2014 report by Fluid and Wells Fargo, online sales now account for 10 percent of the home furnishings market.
-See this Wall Street Journal article
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Online accounts for 10% of home furnishings market