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Linens Holding Co., a Clifton-based home-furnishings specialty retailer that operates as Linens ‘n Things, announced today that the company and its U.S. subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.Linens Holding Co., a Clifton-based home-furnishings specialty retailer that operates as Linens ‘n Things, announced today that the company and its U.S. subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. The national home-furnishings chain says it will continue to operate its stores without interruption during the reorganization.

“The significant deterioration in the mortgage, housing and credit markets and the resulting impact on the retail marketplace, particularly the home sector, has overwhelmed the operating and merchandising improvements that we have made over the past two years,” said Executive Chairman Robert J. DiNicola.

Linens ‘n Things has secured $700 million in debtor-in-possession financing from General Electric Capital Corp. The company says the financing will provide adequate working capital to meet its ongoing obligations during the restructuring and to ensure its stores remain well stocked with merchandise. The company says it expects approval from the bankruptcy court to continue paying employee salaries and benefits, as well as to honor gift cards and store credits.

As part of its financial restructuring, the retailer also announced plans to close 120 underperforming stores, including three New Jersey locations in Howell, Mays Landing and Woodbridge. The New Jersey store closings, which will involve a total of 75 employees, are expected to take place over the next several months, according to a company spokesman.

“The decision to close stores was difficult but necessary to improve LNT’s financial position and place the company on a firmer financial footing as we move forward,” DiNicola said. “We will be able to realize important cost savings and operational efficiencies as a result of this process.”

Linens ‘n Things’ board of directors has named Michael F. Gries, a financial restructuring expert, chief restructuring officer and interim CEO. Under the restructuring plan, DiNicola, the company’s current chairman and CEO, will become executive chairman. David Coder, the executive vice president of store operations, has been appointed president and chief operating officer.

The filing pertains only to Linens ‘n Things’ operations in the United States. The retailer’s Canadian stores, which are among the strongest performers in the chain, are not included in the filing and there are no plans for a similar filing in Canada, the company said. Linens ‘n Things operates nearly 600 stores in 47 states and seven provinces across the United States and Canada, including 23 locations in New Jersey.