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April 11, 2008 – Comments (7)

I noticed Linens'n Things is likely to file for bankrupcy protection.  I noticed that it was in serious trouble a few days ago only I couldn't find a ticker to underperform, oh well.

But that got me thinking about what I know about that business.  In Vancouver (Burnaby) we have a massive mall called Metrotown.   A couple years ago I noticed this Asian linen store.  I have always loved the stuff that Linens'n Things carries, but it is sufficiently expensive that when I buy a bed set I buy one and I want it to last for years, so although I looked at their stuff, I bought very little.  Well, this Asian linen store has beautiful good quality linens for anywhere from 20-50% of the prices.  And since finding that store I have bought about 4 bedding sets that I can rotate through and I've bought complete bedding sets -- sheets, bed spreads, bed skirt, accessory decorative pillows, etc., -- for wedding gifts twice.  Oh, and another wedding this September and guess what I'm buying...

I was in Costa Rica last summer and I noticed their prices for linens in their stores was even cheaper than what this stuff was priced in Metrotown. 

It looks like Bed Bath and Beyond is also facing declining margins or sales. 

There is no way an American or Canadian business can compete with these imports.  There's no way that anyone working for a Canadian or American business trying to compete can make a living working at these businesses. 

7 Comments – Post Your Own

#1) On April 11, 2008 at 10:03 AM, EverydayInvestor (< 20) wrote:

The reason Linens is going bankrupt is because it was taken private in an LBO, and they loaded on too much debt. I agree about prices at BB&B and Linens.

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#2) On April 11, 2008 at 6:46 PM, dwot (69.77) wrote:

Somewhere I was looking for this post that shows the declining quality of the federal reserve.

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#3) On April 11, 2008 at 9:28 PM, lquadland10 (< 20) wrote:

There is no way an American or Canadian business can compete with these imports.   You are right. Most of the people who are making these products earn about 3.00 to 5.00 dollars a DAY. Slave Labor and they are starting to strike. I hope things will change.         Somewhere I was looking for this post that shows the declining quality of the federal reserve.

 The reason everything is more expensive is not because of inflation. Inflation is the end result of how much we have devalued the dollar.  So now people from Canada can get goods cheeper in the U.S. than you can get there in Canada. That is why our trade defacit rose again. We are pay more for the goods we import because of the tanking dollar. The U.S. is going to crash and burn. It is just a matter of time. I give it about 6 mos. It is so sad. Take Care. LQ Report this comment
#4) On April 25, 2008 at 5:10 PM, hondo928 (99.64) wrote:

I think he's bearish :-p

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#5) On April 25, 2008 at 8:26 PM, TheGarcipian (60.56) wrote:

Bearish? Just a tad bit... But he's right about the tanking dollar costing US citizens more money in the long haul for goods like these. I think quite a few businesses will be going under while the Fed continues this idiotic policy of bankrupting us one interest rate cut at a time.

Meanwhile, could someone hand Helicopter Ben his fiddle? He's got a fire to oversee. 

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#6) On April 27, 2008 at 12:37 AM, Dudbud (33.02) wrote:

"The U.S. is going to crash and burn. It is just a matter of time. I give it about 6 mos. It is so sad."

High gas prices!  I like em..

Lower dollar, hmm (both good and bad).

 The sky is not falling people.  Every week I hear about another company setting up shop in the US because we are competive again.  A lower dollar has greatly enabled the ability of US labor to compete.  What does it matter how much a US dollar buys if the majority of Americans can't work?  Oursourceing is slowing to a trickle!  This is a global economy, and US companies who have a global business have little to fear in the current environment.

As far as high oil prices,  bring em on.  I would much rather have sustained high prices then to have wild up and down oil fluctuations.  IF oil/gas prices stay high, we will finally get some real change and innovation to occur..  $60-$80 was a benvolent slow growing cancer; but a killing cancer nontheless.  In the current environment we might just find a way to get the oil monkey off of our back.  There is lots of energy in this world.  Bring on the nuclear, roll out some realistic clean coal tech, continue to add solar and wind capability,  bring on a wave of hyper efficiency so we don't need as much energy (our houses are sieves, our cars/ and power gird too inefficient).  There is plenty of opportunity in what is happening right now!  Stop whining, keep your eyes open, and jump on the opportunity when you see it.

Just my humble opinion :)  Thanks, 

Buddy 

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#7) On May 01, 2008 at 5:32 PM, limeonaire (98.23) wrote:

Just to echo the original point: The price of linens here is insane! Even at high-volume stores like Target, you can scarcely find a decent comforter or sheet set for less than $50. Surely it wasn't always this way, was it? (Given that I'm in my mid-20s and bought sheets recently for the first time ever, I have no historical data to compare this to, but I was flabbergasted when I saw the prices at Linens'n Things, Bed Bath & Beyond and Target.)

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