CHAMPAIGN – The Linens 'n Things store in Champaign will remain open, but the ailing retailer says it will close four other stores in Illinois to help streamline itself at a time consumers are spending less on home furnishings merchandise.

The chain's parent company, Linens Holding Co., filed for reorganization under Chapter 11 of the U.S. bankruptcy code late last week and named 120 stores that will be closed in connection with its restructuring plan.

Stores in Illinois to close are on North Michigan Avenue in Chicago, Deer Grove Center in Palatine, The Promenade Venture II in Schaumburg and Orchard Place Shopping Center in Skokie.

A specialty retailer of home furnishings, the company said it has been hit hard by the economic downturn, particularly in the housing, mortgage and credit markets.

The company operated 589 stores at the end of last year, and reported sales of $2.8 billion for 2007.

Stores remaining open will operate without interruption and will be well-stocked during the reorganization, and all gift cards will be honored, the company said.

The store in Champaign, which is located at 718 W. Town Center Blvd., opened in 2002.