Will LNT go bankrupt?

Shortly after The Sharper Image entered bankruptcy protection (and stopped accepting its own gift cards), now there is word from the Wall Street Journal that Linens 'N Things may declare bankruptcy in the coming days. Linens 'N Things is a major purchaser of iRobot products, although my guess is that iRobot had forced LNT to pay up front for new shipments, as they had with Sharper Image. (iRobot should clarify this if and when a bankruptcy filing occurs). Dyson Inc. recently filed a lawsuit against LNT charging that LNT had failed to pay for more than $1 million in products, and stopped shipping product to LNT a while back, and LNT has counterclaimed that Dyson owes it money for not shipping them products that they had already advertised, according to news reports. If you have any LNT gift cards or know anybody who does, use them this weekend.

Tags: LNT