Linens 'n Things files for bankruptcy, to close Mag Mile store

NEW YORK-- Linens 'n Things is filing for bankruptcy protection and plans to close  four Chicago stores, including its flagship Michigan Avenue location.

The company also plans on closing three other stores in Skokie, Schaumburg and Palatine.

The bedding- and home-furnishings retailer's parent, Linens Holding Co., has filed a petition for Chapter 11 bankruptcy protection in Delaware.

In March the company said its fiscal fourth-quarter loss widened. It has said it was planning to cut costs and reduce staff to turn around results in a ''highly leveraged'' situation.

The Clifton, N.J.-based company was acquired by investment firm Apollo Management in 2006.

It is the latest retailer to be hit by the weakening retail environment as consumers cut back. Sharper Image Corp. and Lillian Vernon Corp. filed for bankruptcy protection in February.