Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MONTHLY OPERATING REPORT

		Document
REQUIRED DOCUMENTS	Form No.	Attached	Explanation

Schedule of Cash Receipts and Disbursements	MOR-1	Yes

Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1A	Yes	MOR 1-A includes explanation and list of bank accounts with book balance.

Schedule of Professional Fees Paid	MOR-1B	Yes

Copies of Bank Statements		No	See explanation on MOR-1A.

Cash Disbursements Journal		No	See summary of disbursements on MOR-1

Statement of Operations	MOR-2	Yes

Balance Sheet	MOR-3	Yes

Status of Postpetition Taxes	MOR-4	Yes

Copies of IRS Form 6123 or Payment Receipt	MOR-4A	Yes	MOR-4A includes verification of tax payments from 3rd party payroll processor.

Copies of Tax Returns Filed During Reporting Period	MOR-4B	Yes	List of tax returns filed. See MOR-4 for further explanation.

Summary of Unpaid Postpetition Debts	MOR-5	Yes

Listing of Aged Accounts Payable	MOR-5A	Yes

Accounts Receivable Reconciliation and Aging	MOR-6	Yes

Debtor Questionnaire	MOR-6	Yes

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

/s/ Scott M. Hurd		2/12/2009
Signature of Authorized Individual		Date

Scott M. Hurd
Printed Name of Authorized Individual

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		1/3/09

MOR-1: SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS (1), (2)

($000s)	Current Month (11/23/08-1/3/09)		Cumulative Since Petition Date

Cash Receipts:

Sales Receipts	$	116,294	$	1,305,679
Other Receipts (i.e. Tenant Allow.)	55,429		137,413
Store Closure Proceeds	—		400,414
Total Receipts	171,723		1,843,507

Cash Disbursements:

Trade Payments:
A/P - Merchandise	16,880		358,346
Rollover A/P - Prepaid	—		8,801
A/P - LC’s & Trade Card	—		66,714
A/P - LAPP	—		11,729
Total Trade Payments	16,880		445,590

Operating Expenses:
Payroll, Payroll Taxes & Benefits	33,943		222,781
Severance (Stores & Home Office)	7,823		7,823
Bonus & Deferred Comp.	3,028		3,028
Rent Checks and Wires	18,613		130,710
Marketing	—		18,383
Capital Expenditures	—		—
Freight	1,077		54,081
Sales Tax Payable	—		68,591
SCS Expense / Savings	—		(2,809		)
Other (Import duties, Misc. CC fees)	34,919		156,501
Administrative & Selling Expenses	—		1,936		(3)
Total Operating Expenses	99,403		661,025

Non-Operating Expenses:
DIP & Revolver Interest & Fees	—		1,052
Other Interest Expense / (Income)	—		2,806
Total Non-Operating Expenses	—		3,858

Net Operating Cash Flow	55,440		733,034

Bankruptcy Expenses:
DIP Fees & Expenses	—		14,000
Deposits for Utilities	—		1,485
Professional Fees & US Trustee Fees	3,571		25,699		(4)
Total Bankruptcy Expenses	3,571		41,184

Net Cash Flows	$	51,869	$	691,850

Draw / (Paydown) of DIP Facility	—		(393,187		)

Net Change in Cash	$	51,869	$	298,663

Disbursements for Calculating U.S. Trustee Quarterly Fees

Total Disbursements for Calculating	$	119,854

	Allocation		Fiscal		Quarter to
	Percentage (5)		Period		Date
Linens ’n Things Center, Inc.	12.2	%	$	14,671	46,908
LNT Merchandising Company LLC	22.4	%	26,814		85,733
LNT Services, Inc.	61.0	%	73,109		233,756
LNT West, Inc.	2.0	%	2,346		7,500
LNT, Inc.	2.4	%	2,865		9,162
Linens ’n Things, Inc.	0.0	%	41		131
LNT Virginia LLC	0.0	%	9		28
LNT Leasing II LLC	0.0	%	—		—
LNT Leasing III LLC	0.0	%	—		—
Bloomington MN L.T., Inc.	0.0	%	—		—
Citadel LNT LLC	0.0	%	—		—
Vendor Finance LLC	0.0	%	—		—
Linens Holding Co.	0.0	%	—		—
	100.0	%	119,854		383,217

(1)	Removed budgeted amounts from schedule. Budget no longer applies since it contemplating a restructuring scenario.
(2)	The cumulative cash receipts and disbursements includes the five-day period prior to the petition date (04/27/08 - 05/01/08). The Debtors do not track projected or actual cash receipts and disbursements on a daily basis. Therefore, the entire first week of the fiscal month is included on this schedule.
(3)	The Debtors’ projections group all Administrative & Selling Expenses into one category. This category includes the Marketing, Freight and Other categories from the Actual disbursements.
(4)	The Debtors paid $1.9 million of this total professional fees between 04/27/08 and the filing date.
(5)	The allocation percentage to the various Debtor entities represents the approximate percentage of the total disbursements made in the 90-day period preceding the petition date made by each debtor (see Statement of Financial Affairs 3-B for each Debtor). The calculation of the percentages is based on disbursements made to third parties and does not include transfers amongst the Debtors.

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-1A: BANK RECONCILIATIONS

I attest that each of the Debtors’ corporate bank accounts is reconciled to monthly bank statements. The Company’s standard practice is to ensure that each corporate bank account is reconciled to monthly bank statements for each calendar month within 30 days after the month end. Store bank accounts are not reconciled on a monthly basis. These accounts are strictly depository accounts; neither checks nor wires are drafted from these accounts. Balances in these accounts are swept into corporate accounts (which are reconciled as described above) on a daily basis. The Company is developing a system to enable it to prepare timely reconciliations for the store bank accounts. See the attached schedule for a listing of each of the Debtors’ bank accounts and the book balance of the account as of the end of the fiscal month covered by this report.

/s/ Scott Hurd
Scott Hurd
CFO
Linens ’N Things

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-1A: BANK RECONCILIATIONS - continuation sheet

Bank Name	Entity	Account #	Book Balance

I. Bank Accounts Classified as “Cash” on the Balance Sheet:

Bank of America	Linens N Things Inc,	...0382	$	224,974
Citizens Bank	Linens N Things Inc,	...5636	90,169
Intrust Bank	Linens N Things Inc,	...1579	10,521
Univest (Pennview)	Linens N Things Inc,	...1641	3,150
Fifth Third	Linens N Things Inc,	...9498	(6,523		)
Bank of the Cascades	Linens N Things Inc,	...2926	628,366
Bankcorp South	LNT Inc.	...2799	1,955
Bank of America	LNT Inc.	...3632	(226,165		)
Chittenden Bank	LNT Inc.	...1837	13,513
First Interstate Bank	LNT Inc.	...6542
Huntington National Bank (Sky)	LNT Inc.	...7158	(1,764		)
National City Bank, IL	LNT Inc.	...9258	205,270
National City Bank, OH	LNT Inc.	...0543	7,351
National City Bank, IN	LNT Inc.	...3604	41,021
National City Bank, MI	LNT Inc.	...5959	404
Regions Bank (Union Planters)	LNT Inc.	...4407	13,987
Regions Bank (AmSouth)	LNT Inc.	...0104	90,211
SunTrust	LNT Inc.	...2338	178,230
TD Banknorth N.A. (Banknorth)	LNT Inc.	...2769	15,527
TD Banknorth N.A. (BoNH)	LNT Inc.	...6681	217,038
US Bank, MO	LNT Inc.	...4286	102,842
Wachovia	LNT Inc.	...4746	1,493,999
Wheatland Bank	LNT Inc.	...0288	36,707
JP Morgan Chase	LNT West	...6720	65,649
Norwest Bank (Wells Fargo)	LNT West	...3860	149,825
Bank of New York	Bloomington	...8546	—
Bank of New York	LNT Leasing II LLC	...8562	—
Bank of New York	LNT Leasing III LLC	...4479	—
Bank of New York	Linens N Things Center	...8261	55,184,548
Bank of New York	Linens N Things Inc.	...0931	—
Bank of New York	LNT Inc.	...8538	—
Bank of New York	LNT West	...8619	—
Bank of New York	LNT Virginia LLC	...8570	—
Bank of New York	LNT Merchandising	...4460	5,746,784
Bank of New York	Citadel	...4568	—
Bank of New York	LNT Services	...3101	—
Wachovia	LNT Services	...8232	—
Wachovia	LNT Leasing II LLC	...8261	—
Wachovia	LNT Leasing III LLC	...8274	—
Wachovia	Center	...8216	106,380
Wachovia	Linens N Things Inc.	...8229	—
Wachovia	LNT Inc.	...8245	—
Wachovia	LNT West	...8258	—
Wachovia	LNT Services	...2572	12,733
Solutran / Lake Region Bank	LNT Inc.	...4045	54,367
JPMorgan Chase	LNT Services	...5828	2,663

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-1A: BANK RECONCILIATIONS - continuation sheet

Bank Name	Entity	Account #	Book Balance

Bank of America	LNT Inc.	...8980	250,000
Bank of America	LNT Inc.	...9000	13,609,010
Bank of America	LNT Inc.	...9729	185,060
Bank of America	Linens ’N Things, Inc.	...9192	—
JPMorgan Chase	LNT Services	...5801	107,973
Evergreen Investments	LNT Services	...4761	161,788
Bank of New York	Linens N Things Center	...0307	—
Bank of New York	LNT Merchandising	...7842	—
Bank of America	Utility Deposits	...9192	1,084,663
Bank of America	Fixed Assets	7941	1,680,000

			81,542,226
Adjustments:
Store Deposits Swept into Centralized Accounts (in transit)			(226,392		)
Cash on Hand at Stores			402
Miscellaneous			(40,909		)
Lease and Tax Payments in Transit			125,939

Cash Balance per Balance Sheet			81,401,266

II. Bank Accounts Classified as Liabilities on Balance Sheet (Outstanding Checks)

Bank of New York	LNT Merchandising	...3296	(3,445,996		)
Bank of New York	LNT Services	...3270	(4,950,421		)
Bank of New York	LNT Services	...3288	(7,729,583		)
			(16,126,000		)

III. Net Book Balance			$	65,275,266

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-1B: SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID (1)

Period

Check

Amount Paid

Payee

Covered

Number

Date

December

YTD

Conway, Del Genio & Gries

Nov Exp / Dec Fees

Wire

12/01/08

200,280

1,443,937

Carl Marks

September Invoice

Wire

12/01/08

101,004

515,619

Asset Disposition Advisors

September Invoice

Wire

12/01/08

329,565

1,497,960

Cole Schotz

July Holdback

Wire

12/01/08

10,646

see below

Cole Schotz

August Invoice

Wire

12/01/08

74,205

see below

Cole Schotz

September Invoice

Wire

12/01/08

50,684

see below

Cole Schotz

October Invoice

Wire

12/01/08

41,893

310,479

Financo

N/A

—

154,083

Gardere

October Invoice

Wire

12/01/08

383,235

1,089,905

Otterbourg

September Invoice

Wire

12/01/08

251,967

see below

Otterbourg

October Invoice

Wire

12/01/08

324,615

1,932,558

Richards, Layton & Finger

N/A

—

290,182

Protiviti

August Invoice

12/01/08

52,263

560,261

Total

1,820,357

7,794,985

(1) Includes amounts paid to court approved professionals only (Debtors’ and Creditors’ Committee professsionals). Does not include application of retainer balances.

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		1/3/09

MOR-2: STATEMENT OF OPERATIONS

(Income Statement)

	December			November			October			Cumulative
	(11/23/08-1/3/09)			(10/26/08-11/22/08)			(9/28/08-10/25/08)			Filing to Date

Gross Revenues	$	—		$	—		$	54,468,143		$	653,119,162
Rebates and Returns	(7,738		)	(46,118		)	(489,363		)	1,164,629
Cost of Goods Sold	—			—			(23,821,805		)	(314,520,563		)

Initial Mark On (IMO)	(7,738		)	(46,118		)	30,156,975			339,763,228

Markdowns	13,538			(14,377		)	(4,866,841		)	60,836,636
Gross Allowances	(20,872		)	87,088			(5,050,508		)	(24,549,713		)
Deferred Allowances	—			—			—			(21,980,722		)
Total Markdowns - Net	(7,334		)	72,711			(9,917,349		)	14,306,201

Merchant Margin	(404		)	(118,829		)	40,074,324			325,457,027

Supply Chain Expenses	(2,979,369		)	1,457,536			(1,509,784		)	(26,968,665		)
Buying, Product Development, Shrink	(1,452,642		)	(1,131,936		)	5,946,794			(13,323,476		)
Gross Profit	(4,432,415		)	206,771			44,511,334			285,164,886

Store Payroll Expense	(9,748,624		)	(1,519,647		)	(7,491,105		)	(96,606,918		)
Other Store Selling Expenses (see attached schedule)	(2,818,297		)	(1,513,764		)	(2,493,946		)	(28,690,116		)
Total Selling Expense	(12,566,921		)	(3,033,411		)	(9,985,051		)	(125,297,034		)

Margin after Selling Expenses	(16,999,336		)	(2,826,640		)	34,526,283			159,867,852

Occupancy	6,106,153			(7,284,321		)	(13,264,440		)	(179,679,468		)
Sales Promotions	(746,684		)	(1,393,559		)	(2,805,153		)	(25,879,342		)
Other Store Expenses (see attached schedule)	(780,055		)	302,399			(1,983,973		)	(8,166,363		)
Supervisory / Other	(103,579		)	(1,161,363		)	(500,790		)	(6,240,845		)
Total Store Expenses	4,475,835			(9,536,844		)	(18,554,356		)	(219,966,018		)

Store Contribution	(12,523,501		)	(12,363,484		)	15,971,927			(60,098,166		)

Administrative Salaries	(2,016,386		)	(1,745,966		)	(1,832,312		)	(16,465,169		)
Other Administrative Expenses (see attached schedule)	(3,242,130		)	11,611,439			4,036,589			4,658,562
Other Income / (Expense)	105,334			(1,765,920		)	239,720			2,102,736
Interest	93,132			77,289			(566,666		)	(9,525,922		)
Taxes	—			—			(259,115		)	(1,986,829		)
Total General & Administrative	(5,060,050		)	8,176,842			1,618,216			(21,216,622		)

Net Earnings	$	(17,583,551	)	$	(4,186,642	)	$	17,590,143		$	(81,314,788	)

Reorganization Items (see attached schedule)	(58,223,201		)	(58,223,201		)	68,026,722			(245,310,401		)

Net Earnings After Reorganization Items	$	(75,806,752	)	$	(62,409,843	)	$	85,616,865		$	(326,625,189	)

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		1/3/09

MOR-2: STATEMENT OF OPERATIONS - continuation sheet

	Postpetition
	Fiscal Period			Cumulative
Breakdown of “Other” Category	(11/23/08-1/3/09)			Filing to Date

Other Store Selling Expenses
- Payroll Taxes	$	(2,457,812	)	$	(12,374,316	)
- Employee Benefits	3,141,878			6,492,045
- Workers Compensation	(806,644		)	(8,314,488		)
- 401(K)	(57,787		)	(726,215		)
- Store Travel	(3,609		)	(204,914		)
- Management Development	(3,434		)	(183,844		)
- Store Supplies	(2,684,410		)	(5,842,059		)
- Third Party Commissions	55,771			(6,918,595		)
- Store Bonus Cost	—			(352,559		)
- Employee Referrals	(2,250		)	(79,020		)
- Relocations	—			(186,151		)
	(2,818,297		)	(28,690,116		)
Other Store Expense
- Cash Over & Short	(35,676		)	(197,980		)
- Inventory Fees	0			(402,755		)
- Security	(172,727		)	(1,192,898		)
- Bad Checks Expense	53,936			(114,581		)
- Check Collection Fees, Net	721			(2,694		)
- Credit & Check Auth Fee	(192,762		)	(859,208		)
- Telephone	(235,465		)	(1,100,628		)
- Postage	—			(158,412		)
- Charge Card Discount, Net	(5,983,420		)	(23,347,395		)
- Bank Service Fees	(1,163,351		)	(1,778,668		)
- Employment Agency Fees	2,584			(82,509		)
- Miscellaneous	6,946,105			21,071,365
	(780,055		)	(8,166,363		)
Other Administrative Expenses
- Division Management	(6,427		)	(108,564		)
- Human Resources	(27,206		)	(974,648		)
- Construction & Maintenance	(11,720		)	458,849
- Store Planning	(1,111		)	(10,995		)
- Lease Administration	(2,254		)	(20,526		)
- Legal	—			(503,431		)
- Marketing	(5,354		)	(71,523		)
- Accounting & Shrink	(64,379		)	(509,682		)
- Quality Control	(20,085		)	981,855
- Admin Services	(1,007		)	(471,796		)
- Information Services	(162,969		)	(3,013,952		)
- Store Operations	(5,544		)	(44,101		)
- Home Office	(9,059		)	(171,944		)
- Shareholder Reporting	—			(64,020		)
- Employee Benefits	16,023			(469,354		)
- Minimum Rent	(332,915		)	(1,534,684		)
- Outside Services	(118,967		)	(891,958		)
- Consulting	—			(497,297		)
- Miscellaneous	(1,918,396		)	(1,534,142		)
- Home Office Operating Costs	(107,026		)	(1,047,267		)
- Insurance	(30,135		)	(462,112		)
- Apollo & NRDC Management Fees	—			(803,573		)
- Stock Option Expense	—			6,813,129
- Workers Comp	—			12,224,897
- 401(K)	(51,493		)	(647,122		)
- Audit Fees	—			(1,194,500		)
- Directors & Registers Fees	—			606,685
- Charitable Contribution	(21,321		)	(82,074		)
- Merchandise Allocation	—			2,643,303
- Amort of DIP Costs	—			(1,822,399		)
- Administrative Office Depreciation	(360,785		)	(2,118,492		)
	(3,242,130		)	4,658,562
Other Reorganization Expenses
- Transaction Costs - Financing Costs	—			(10,976,082		)
- Transaction Costs - Legal & Professional Fees	(5,300,837		)	(19,367,342		)
- Credit Facility Fees	—			(10,620,225		)(1)
- Restructuring Reserve	3,402,091			76,619,966
- Store Closing Expenses	(56,324,455		)	(280,966,718		)
	(58,223,201		)	(245,310,401		)

(1) Represents the write-off of the costs associated with the prepetition credit facility.

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-3: BALANCE SHEET

	Postpetition Fiscal			Postpetition Fiscal			Postpetition Fiscal
	Period as of			Period as of			Period as of			Prepetition Balance
	01/03/09			11/22/08			10/25/08 (a)			as of 5/01/08
Assets
Current Assets
Cash	$	81,401,266		$	81,542,712		$	60,123,384		$	26,512,240
Accounts Receivable (Net)	30,422,548			75,126,714			75,816,398			25,333,978
Inventory	2			—			—			696,841,386
Inventory Related to Liquidation Sales	—			10,499,529			450,406,451			—
Prepaid Expenses	6,867,442			11,779,964			13,467,183			41,949,381
Total Current Assets	118,691,258			178,948,919			599,813,416			790,636,985

Property & Equipment
Building	5,010,000			5,010,000			5,010,000			5,010,000
Furniture & Fixtures	3,352,274			101,015,249			109,982,620			292,277,444
Hardware	4,560,211			5,748,729			5,748,729			14,866,273
Leasehold Improvements	1,610,404			2,228,988			9,842,241			207,217,671
Land	1,030,400			1,030,400			1,030,400			1,030,400
Software	6,574,653			7,176,757			7,176,757			8,911,489
Less: Accumulated Depreciation	(11,736,783		)	(55,078,977		)	(59,647,943		)	(214,507,584		)
Total Property & Equipment	10,401,159			67,131,146			79,142,804			314,805,693

Other Assets
Identifiable Intangible	123,518,294			123,518,294			123,785,452			138,157,957
Goodwill	253,159,671			253,159,671			253,159,671			253,159,671
Other Noncurrent Assets (see attached)	3,399,830			3,521,801			3,518,429			36,700,672
Total Other Assets	380,077,795			380,199,766			380,463,552			428,018,300

Total Assets	$	509,170,212		$	626,279,831		$	1,059,419,772		$	1,533,460,978

Liabilities and Shareholders’ Equity
Liabilities Not Subject to Compromise
Current Liabilities
Accounts Payable, Merchandise Accruals, Refunds & Allow.	6,039,565			9,492,126			75,086,095			87,301,142
Due To Customers	—			3,314,395			5,911,497			41,159,477
Salaries And Wages	13,708,993			6,686,260			6,888,039			11,564,444
Taxes (non Franchise and Income Tax)	23,050,937			24,569,609			15,070,971			14,990,551
Workers Compensation	3,475			—			2,645,554			2,093,201
Current Retirement Plans	—			—			—			56,148
Rent	—			—			—			—
General Liability Claims	557,783			815,020			815,020			1,330,306
Accrued Auto Claims and Uninsured Losses	22,305			22,305			22,305			346,074
Other Accrued Liabilities (see attached)	(6,487,977		)	30,357,414			242,710,531			146,966,580
Total Current Liabilities	36,895,081			75,257,129			349,150,013			305,807,923

Long Term Liabilities
Long-Term Borrowings	(47,986,877		)(b)	(106,591,518		)(b)	(31,276,478		)(b)	1,032,387,823
Noncurrent Deferred Income	—			—			—			47,837,278
Other Liabilities	—			4,427,105			4,238,786			80,099,764
Total Long Term Liabilities	(47,986,877		)	(102,164,413		)	(27,037,692		)	1,160,324,865

Total Liabilities Not Subject to Compromise	(11,091,796		)	(26,907,284		)	322,112,321			1,466,132,788

Liabilities Subject to Compromise
L/T Senior Secured Note	530,000,000			580,000,000			650,000,000			—
Unsecured Claims	252,352,478			242,609,881			239,474,957			—
Priority Claims	8,443,656			26,390,362			26,391,683			—
Total Liabilities Subject to Compromise	790,796,134			849,000,243			915,866,640			—

Total Liabilities	779,704,338			822,092,959			1,237,978,961			1,466,132,788

Shareholders’ Equity
Common Stock	130,130			130,130			130,130			130,130
Additional Paid-In Capital	593,666,009			593,666,009			593,666,009			600,479,139
Retained Earnings - Prepetition	(536,191,697		)	(536,191,697		)	(536,191,697		)	(536,191,697		)
Retained Earnings - Postpetition	(326,637,484		)	(250,830,736		)	(233,765,117		)	—
Currency Gain/Loss	(1,501,084		)	(2,586,834		)	(2,398,514		)	2,910,618
Net Shareholders’ Equity	(270,534,126		)	(195,813,128		)	(178,559,189		)	67,328,190

Total Liabilities and Shareholders’ Equity	$	509,170,212		$	626,279,831		$	1,059,419,772		$	1,533,460,978

(a)		The Debtors’ converted from accrual-basis accounting to cash-basis accounting in October 2008.
(b)		The negative liability balance for secured debt is a result of GECC requiring the Debtors to build up its balance to cover its Letters of Credit.

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-3: BALANCE SHEET - continuation sheet

	Postpetition Fiscal
	Period as of
	01/03/09
Assets
Other Noncurrent Assets
- Utility Deposits	$	2,782,364
- Security Deposits	5,000
- CSV of Nationwide Life Insurance Policy on N. Axelrod	612,466
	3,399,830
Liabilities and Owners’ Equity
Current Liabilities - Other Accrued Liabilities
- Deferred Compensation	(22,634		)
- Payroll Garnishments	(57,662		)
- Cash BONY O/S Checks	12,680,004
- Net Due to Liquidators	(20,834,218		)
- State Income Tax Payable	1,746,533
	(6,487,977		)

Adjustments to Owners’ Equity
- Net Earnings	(75,806,752		)
- Net Earnings (Immaterial Adjustment)	4
- Change in Currency Gain / Loss from Exchange Rates	1,085,750
	(74,720,998		)

In re: Linens Holding Co. et al.	Case No.:		08-10832
	Fiscal Month Ended:		01/03/09

MOR-4: STATUS OF POSTPETITION TAXES (4)

				Amount
	Beginning			Withheld or		Amount		Date	Check No.	Ending Tax
	Tax Liability			Accrued		Paid(5)		Paid	or EFT	Liability

Federal
Withholding	$	85,335		$	16,299,254	$	16,384,589	Various	Various	$	—
FICA - Employee & Employer	940,365			6,266,755		7,207,120		Various	Various	—
Unemployment	43,175			107,748		150,923		Various	Various	—
Income	—			—		—		N/A	N/A	—
Other	—			—		—		N/A	N/A	—
Total Federal	1,068,875			22,673,757		23,742,632				—

State and Local
Withholding	285,398			1,318,759		1,604,157		Various	Various	—
Sales & Use / Excise (3)	16,802,237			22,711,512		25,832,895		Various	Various	13,680,854
Unemployment	(24,831		)	384,109		359,277		Various	Various	—
Real Property (1)	—			—		—		N/A	N/A	—
Personal Property (2)	10,941,736			—		149,494		Various	Various	10,792,242
Other (2)	1,526,596			42,230		42,230		N/A	N/A	1,526,596
Total State and Local	29,531,136			24,456,610		27,988,054				25,999,692

Total Taxes	$	30,600,010		$	47,130,367	$	51,730,686			$	25,999,692

(1)		The Debtors no longer accrue for real property taxes.
(2)		The Debtors have received permission from the Court to pay its prepetition tax obligations. The beginning balances include the prepetition liability for Personal Property and Other (state income and franchise taxes).
(3)		Excludes Sales Tax audits.
(4)		These balances will not tie directly to the balance sheet. The balance sheet accounts includes offsetting receivable balances due from various taxing authorities. This analysis only includes jurisdictions with payable balances.
(5)		Amount paid does not tie to MOR-1 because there are certain differences related to the timing disbursements are captured in the cash flow projection model and there are certain differences related to the timing disbursements are captured in the cash flow projection model and the company’s general ledger.

TAX RETURNS FILED DURING THE REPORTING PERIOD

I attest that all sales and use tax returns have been filed in accordance with state / county / city requirements for the above referenced period and according to the Company’s tax payment schedule. (See attached schedule - MOR-4A.) Any payments remitted have been incorporated into the Schedule of Cash Receipts and Disbursements at MOR-1.

All payroll taxes and tax returns are paid through ADP, a third-party payroll processor. ADP is responsible for withholding all tax amounts from employee wages and remitting both the employer and employee portion of payroll tax liabilities to the appropriate jurisdictions. The attached are confirmations that Linens ’N Things has remitted payroll tax obligations to ADP for each of the payroll runs during the fiscal month covered by this report.

/s/ Scott Hurd
Scott Hurd
CFO
Linens ’N Things

MOR-4A: Verification of Tax Payments from

Third Party Payroll Processor

Automatic Data Processing
Tax/Financial Services
400 Covina Blvd.
San Dimas, California 91773
(909) 592-6411

FACSIMILE TRANSMISSION

ATTENTION:		TERI JAWOROWSKI

TO:		LNT INC
BR/CO:		73/L-1

FROM:		Wire Transfer Department

DATE:		12/30/08
TIME:		19:50:24

Number of Pages: Including Cover Sheet: 3

URGENT!

SPECIAL NOTE:

Please see attached INVOICE for “the amount” to be charged to your ACCOUNT on DATE INDICATED.

If you have any questions regarding transmission problems please contact the Wire Transfer Department at 866-742-5166 between 6:30a.m. - 5:00p.m. PT

If you have any questions concerning the details of the invoice please contact your Account Manager or Client Service Representative.

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 COVINA BLVD.
SAN DIMAS, CA 91773

		12/30/2008
	DOC NO:	678018257092
	CLEAR DOC NO:	678018257092
		73L-1-A

WIRE CONFIRMATION

LNT INC

ATTN: TERI JAWOROWSKI

6 BRIGHTON ROAD

CLIFTON, NJ 07015

THIS IS TO ADVISE YOU IN DETAIL OF HOW YOUR RECENT WIRE TRANSFER WAS APPLIED TO YOUR ACCOUNT.

BR/CO

DESCRIPTION

DOCUMENT NO

CHECK DATE

RSN

AMOUNT

73/L&T

REV/PYRS

68235747

06/13/2008

97.59 CR

FILE #: 307703

PRODUCT: IO: ER WGPS

SUB TOTAL

97.59 CR

73/L-1

REV/PYRS

68235570

06/13/2008

44.67 CR

FILE #: 285871

PRODUCT: IO: ER WGPS

73/L-1

IMP/PYRL

589011663306

12/31/2008

IMP

37,036.58 DR

BROKER ID: 79217169

PRODUCT: IO: ER WGPS

73/L-1

REV/PYRS

68520367

06/06/2008

126.19 CR

FILE #: 279190

PRODUCT: IO: ER WGPS

SUB TOTAL

36,865.72 DR

73/L-2

REV/PYRS

68205626

12/19/2008

107.89 CR

FILE #: 336773

PRODUCT: IO: ER WGPS

73/L-2

IMP/PYRL

587011011735

12/31/2008

IMP

22,875.24 DR

BROKER ID: 79217295

PRODUCT: IO: ER WGPS

SUB TOTAL

22,767.35 DR

73/L-6

IMP/PYRL

587011011740

12/31/2008

IMP

973.36 DR

BROKER ID: 79217299

PRODUCT: IO: ER WGPS

73/L-6

REV/PYRS

68343208

09/26/2008

60.74 CR

FILE #: 306393

PRODUCT: IO: ER WGPS

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 COVINA BLVD.
SAN DIMAS, CA 91773

		12/30/2008
DOC NO:		678018257092
CLEAR DOC NO:		678018257092
		73L-1-A

WIRE CONFIRMATION

BR/CO

DESCRIPTION

DOCUMENT NO

CHECK DATE

RSN

AMOUNT

SUB TOTAL

912.62 DR

73/L-7

IMP/PYRL

586011724959

12/31/2008

IMP

351.11 DR

BROKER ID: 79217301

PRODUCT: IO: ER WGPS

SUB TOTAL

351.11 DR

TOTAL

60,799.21 DR

WIRE SUMMARY

WIRE TRANSFERS			SETTLED
PROCESS DATE	AMOUNT		AMOUNT
12/30/2008	$	60,799.21 DR	$	60,799.21 DR

PLEASE CALL YOUR CLIENT SERVICE REPRESENTATIVE WITH ANY QUESTIONS YOU MAY HAVE CONCERNING THIS CONFIRMATION.

REASON DESCRIPTION:

C0:	YOU ARE BEING CREDITED FOR AN EMPLOYEE PAYMENT THAT WAS DELETED AT YOUR REQUEST FOR THE ABOVE EMPLOYEE(S) AND PAY DATE(S)

IMP:	YOUR ACCOUNT IS BEING CHARGED FOR AMOUNTS DUE FOR THE PAYROLL (OR PAYROLL ADJUSTMENTS) ASSOCIATED WITH THE ABOVE PAYROLL CHECK DATE.

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 COVINA BLVD.
SAN DIMAS, CA 91773

		12/24/2008
	DOC NO:	616019268682
	CLEAR DOC NO:	616019268682
		73L-1-A

WIRE CONFIRMATION

LNT INC

ATTN: TERI JAWOROWSKI

6 BRIGHTON ROAD

CLIFTON, NJ 07015

THIS IS TO ADVISE YOU IN DETAIL OF HOW YOUR RECENT WIRE TRANSFER WAS APPLIED TO YOUR ACCOUNT.

BR/CO

DESCRIPTION

DOCUMENT NO

CHECK DATE

RSN

AMOUNT

73/L&T

IMP/PYRL

682013443470

12/26/2008

IMP

900.93 DR

BROKER ID: 78732944

PRODUCT: IO: ER WGPS

SUB TOTAL

900.93 DR

73/L-1

REV/PYRS

68797192

06/20/2008

129.36 CR

FILE #: 279190

PRODUCT: IO: ER WGPS

73/L-1

REV/PYRS

68176271

10/17/2008

67.63 CR

FILE #: 311870

PRODUCT: IO: ER WGPS

73/L-1

IMP/PYRL

682013443588

12/26/2008

IMP

12,130.83 DR

BROKER ID: 78733117

PRODUCT: IO: ER WGPS

73/L-1

SPLT/RFND

68435490

12/19/2008

172.00 CR

FILE #: 237587

BROKER ID: 78268698

PRODUCT: IO: ER WGPS

SUB TOTAL

11,761.84 DR

73/L-2

IMP/PYRL

683013644638

12/26/2008

IMP

3,026.04 DR

BROKER ID: 78733312

PRODUCT: IO: ER WGPS

SUB TOTAL

3,026.04 DR

73/L-3

IMP/PYRL

683013644660

12/26/2008

IMP

4,406.15 DR

BROKER ID: 78733364

PRODUCT: IO: ER WGPS

SUB TOTAL

4,406.15 DR

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 COVINA BLVD.
SAN DIMAS, CA 91773

		12/24/2008
DOC NO:		616019268682
CLEAR DOC NO:		616019268682
		73L-1-A

WIRE CONFIRMATION

BR/CO

DESCRIPTION

DOCUMENT NO

CHECK DATE

RSN

AMOUNT

73/L-4

IMP/PYRL

683013644673

12/26/2008

IMP

1,472.41 DR

BROKER ID: 78733371

PRODUCT: IO: ER WGPS

SUB TOTAL

1,472.41 DR

TOTAL

21,567.37 DR

WIRE SUMMARY

WIRE TRANSFERS			SETTLED
PROCESS DATE	AMOUNT		AMOUNT
12/24/2008	$	21,567.37 DR	$	21,567.37 DR

PLEASE CALL YOUR CLIENT SERVICE REPRESENTATIVE WITH ANY QUESTIONS YOU MAY HAVE CONCERNING THIS CONFIRMATION.

REASON DESCRIPTION:

C0:	YOU ARE BEING CREDITED FOR AN EMPLOYEE PAYMENT THAT WAS DELETED AT YOUR REQUEST FOR THE ABOVE EMPLOYEE(S) AND PAY DATE(S)

EI:	VOID - CLIENT ERROR/INCORRECT $ AMOUNT. AS YOU HAVE REQUESTED FOR THE EMPLOYEE(S) LISTED ABOVE, WE HAVE CREDITED THIS AMOUNT TO YOUR COMPANY AS IT CONTAINED THE INCORRECT AMOUNT AND WILL NOT BE DISBURSED TO THE PAYEE.

IMP:	YOUR ACCOUNT IS BEING CHARGED FOR AMOUNTS DUE FOR THE PAYROLL (OR PAYROLL ADJUSTMENTS) ASSOCIATED WITH THE ABOVE PAYROLL CHECK DATE.

Automatic Data Processing
Tax/Financial Services
400 Covina Blvd.
San Dimas, California 91773
(909) 592-6411

FACSIMILE TRANSMISSION

ATTENTION:		TERI JAWOROWSKI

TO:		LNT INC
BR/CO:		73/L-1

FROM:		Wire Transfer Department

DATE:		12/24/08
TIME:		19:18:07

Number of Pages: Including Cover Sheet: 4

URGENT!

SPECIAL NOTE:

Please see attached INVOICE for “the amount” to be charged to your ACCOUNT on DATE INDICATED.

If you have any questions regarding transmission problems please contact the Wire Transfer Department at 866-742-5166 between 6:30a.m. - 5:00p.m. PT

If you have any questions concerning the details of the invoice please contact your Account Manager or Client Service Representative.

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 W COVINA BLVD
SAN DIMAS, CA 91773

	DATE:	12/30/08

	INVOICE NO:	3115625-01
	BR/CO:	73/L-1
	BALANCE DUE:	$ 4,911,002.78 DR

ADJUSTED INVOICE

LNT INC

ATTN: TERI JAWOROWSKI

6 BRIGHTON ROAD

CLIFTON, NJ 07015

THE “BALANCE DUE” AMOUNT WILL BE CHARGED TO YOUR ACCOUNT ON 12/30/08.

BR/CO	DESCRIPTION	CHECK DATE	REASON	AMOUNT		COMMENT

73/L-1	TAX	12/31/08	21	2,838,162.97 DR		NEW ITEM VER 01
						BATCH #01776
PAYROLL TOTAL				$	2,838,162.97 DR
73/L-6	TAX	12/31/08	21	73,424.49 DR		NEW ITEM VER 01
						BATCH #01766
PAYROLL TOTAL				$	73,424.49 DR
73/L-2	TAX	12/31/08	21	1,905,126.02 DR		NEW ITEM VER 01
						BATCH #01809
PAYROLL TOTAL				$	1,905,126.02 DR
73/L-7	TAX	12/31/08	21	93,993.23 DR		NEW ITEM VER 01
						BATCH #01766
PAYROLL TOTAL				$	93,993.23 DR

SUB-TOTAL:				$	4,910,706.71 DR

73/L-1	MONROE, PA-CIT	06/30/05	42	296.07 DR		TRC5836125V1

SUB-TOTAL ADJ FOR TAX				$	296.07 DR

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 W COVINA BLVD
SAN DIMAS, CA 91773

	DATE:	12/30/08

	INVOICE NO:	3115625-01
	BR/CO:	73/L-1
	BALANCE DUE:	$ 4,911,002.78 DR

ADJUSTED INVOICE

BR/CO	DESCRIPTION	CHECK DATE	REASON	AMOUNT		COMMENT

		INVOICE TOTAL		$	4,911,002.78 DR

		BALANCE DUE		$	4,911,002.78 DR

IF YOU HAVE ANY QUESTIONS CONCERNING THIS INVOICE, PLEASE CALL YOUR CLIENT SERVICE REPRESENTATIVE.

REASON DESCRIPTION:

21		YOUR ACCOUNT IS BEING CHARGED FOR THE PAYROLL TAX LIABILITY (OR PAYROLL ADJUSTMENTS) FOR THE ABOVE REFERENCED PAYROLL CHECK DATE.

42		TAX MONIES ARE BEING COLLECTED FOR ADDITIONAL LOCAL INCOME TAX LIABILITY DUE. A VERIFICATION OF TAXABLE WAGES TO THE PERCENTAGE OF TAX WITHHELD HAS RESULTED IN A CHARGE TO YOUR ACCOUNT. PLEASE CONTACT YOUR CLIENT SERVICES REPRESENTATIVE TO CORRECT CODING OF INDIVIDUAL EMPLOYEES OR PAY TYPES.

Automatic Data Processing
Tax/Financial Services
400 Covina Blvd.
San Dimas, California 91773
(909) 592-6411

FACSIMILE TRANSMISSION

ATTENTION:		TERI JAWOROWSKI

TO:		LNT INC
BR/CO:		73/L-1

FROM:		Wire Transfer Department

DATE:		12/30/08
TIME:		03:04:26

Number of Pages: Including Cover Sheet: 3

URGENT!

SPECIAL NOTE:

Please see attached INVOICE for “the amount” to be charged to your ACCOUNT on DATE INDICATED.

If you have any questions regarding transmission problems please contact the Wire Transfer Department at 866-742-5166 between 6:30a.m. - 5:00p.m. PT

If you have any questions concerning the details of the invoice please contact your Account Manager or Client Service Representative.

AUTOMATIC DATA PROCESSING
TAX FILING SERVICE
400 Covina Blvd.
San Dimas CA 91773

		12/30/2008
		73/L-1
		WIRE TRANSFER

LNT INC
ATTN: TERI JAWOROWSKI
6 BRIGHTON ROAD
CLIFTON, NJ 07015

THE FOLLOWING TOTAL WILL BE CHARGED TO YOUR ACCOUNT ON 12/30/2008: $60,799.21

BR/CO

DESCRIPT

DUE DATE

DOCUMENT NO

CHECK DATE

RSN

AMOUNT

73/L-1

WGPS

12/16/2008

68235747

06/13/2008

97.59 CR

EE #: 307703

CHECK #: UNKNOWN

IO: 73L&T-A WGPS

SUB-TOTAL

97.59 CR

73/L-1

WGPS

12/16/2008

68235570

06/13/2008

44.67 CR

EE #: 285871

CHECK #: UNKNOWN

IO: 73L-1-A WGPS

SUB-TOTAL

44.67 CR

73/L-1

WGPS

12/17/2008

68343208

09/26/2008

60.74 CR

EE #: 306393

CHECK #: UNKNOWN

IO: 73L-6-A WGPS

SUB-TOTAL

60.74 CR

73/L-1

WGPS

12/18/2008

68205626

12/19/2008

107.89 CR

EE #: 336773

CHECK #: UNKNOWN

IO: 73L-2-A WGPS

SUB-TOTAL

107.89 CR

73/L-1

WGPS

12/20/2008

68520367

06/06/2008

126.19 CR

EE #: 279190

CHECK #: UNKNOWN

IO: 73L-1-A WGPS

73/L-1

WGPS

12/30/2008

589011663306

12/31/2008

IMP

37,036.58 DR

BROKER ID: 79217169

IO: 73L-1-A WGPS

SUB-TOTAL

36,910.39 DR

73/L-1

WGPS

12/30/2008

587011011735

12/31/2008

IMP

22,875.24 DR

BROKER ID: 79217295

73/L-1

IO: 73L-2-A WGPS

SUB-TOTAL

LINENS N THINGS INC 8-K