Gordon Brothers Brands and Hilco Consumer Capital Acquire Linens 'N Things Intellectual Property Assets

Press Release
NEW YORK, February 6, 2009 - A joint venture led by Hilco Consumer Capital, L.P. ("HCC") and Gordon Brothers Brands, LLC ("GBB") today announced that it has acquired the intellectual property assets of Linens 'N Things, a widely recognized and popular home textiles and housewares brand. The acquisition includes the established Linens 'N Things brand name, its bridal and gift registry businesses, all Internet domains, a number of proprietary brands, including, Luxe Versailles, Attitude, Super Set, Cook at Home and Hotel Living that contributed significantly to the company's $2.8 billion sales in 2007 from its 25,000 SKU offering.

Similar to other investments of Gordon Brothers Brands and Hilco Consumer Capital, such as The Sharper Image and Bombay Brands, Linens 'N Things will relaunch under new stewardship in early 2009 as a global licensed brand. The strategy will include a combination of retail shop-in-shop, direct-to-retail (DTR) licensing, wholesale licensing by category and geography, as well as e-commerce. This will enable Linens 'N Things to branch outside the confines of a single retail chain and onto the shelves of leading retailers throughout the world, including Canada where the company ran a highly profitable chain of 40 stores doing over $300 million in annual sales. The e-commerce platform will feature both the well known international brands as well as the Linens 'N Things private label assortment.

"Linens 'N Things built an enormous customer following throughout its 34 year history that very few home textiles and housewares brands have achieved," said James Salter, CEO of Hilco Consumer Capital. "We're extremely pleased to partner with Gordon Brothers to reinvigorate a brand that did more than just sell home products and accessories – it inspired loyal customers to create unique personal living spaces."

"We are enthusiastic about the broad demographic appeal of Linens 'N Things and its highly trafficked website, www.lnt.com," said Stephen Miller, Principal, Gordon Brothers Group. "We believe the licensing program will bring global growth to this premiere home market brand."

"We're also excited to forge new partnerships with retailers to bring Linens 'N Things goods back onto shelves in the very near future," added Brad Snyder, Principal, Gordon Brothers Group. "Customers who have known the brand for decades will be able to find products they trust in retail channels they shop today."

The first Linens 'N Things store opened in 1975 in West Orange, New Jersey offering high-end linens at discount prices. Since then, an expanding customer base helped Linens 'N Things grow to become the second largest specialty retailer of home furnishings and decorative accessories with 589 stores across North America. Linens 'N Things filed for bankruptcy in May of 2008.

About Gordon Brothers Brands, LLC:

Gordon Brothers Brands ("GBB") is a member of the Gordon Brothers Group family of companies. GBB purchases, sells, and licenses brands and other intellectual property. Current portfolio brands and companies include Rugged Shark(R), The Sharper Image(R) and Bombay Brands, LLC among others. Founded in 1903, Gordon Brothers Group (www.GordonBrothers.com) is a global advisory, restructuring and investment firm specializing in retail and consumer products, industrial and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, appraising assets, providing debt financing, making private equity investments, and operating businesses for extended periods. Gordon Brothers Group conducts over $40 billion in annual transactions and appraisals in over 15 offices worldwide.

About Hilco Consumer Capital, L.P.

Hilco Consumer Capital ("HCC") (www.hilcocc.com) is a private equity firm that makes strategic investments in consumer lifestyle brands worldwide. HCC investments range from $25 million to $250 million. Current portfolio brands and companies include Caribbean Joe(R), Ellen Tracy, Halston(R), Tommy Armour Golf(R), RAM Golf(R), Sharper Image, and Bombay Brands, LLC. HCC is a unit of The Hilco Organization, a Chicago-based, international provider of diversified financial and operational services, including business asset valuations, asset acquisition and disposition services, M&A services and retail consulting, with offices in Toronto, New York, Chicago and London.