According to Reuters and the New York Post, bankrupt home furnishings retailer Linens 'n Things has reportedly devised a plan to emerge from bankruptcy early next year.

Under the plan, the retailer will reverse many of the strategies introduced after the company was bought for $1.3 billion in 2005 by billionaire Leon Black's buyout firm Apollo Management, the paper quoted sources as saying.

Chief among those tactics was a shift to splashy clearance sales and product promotions, the paper said.

Current management, under the direction of turnaround advisory firm Conway, Del Genio, Gries & Co, plans to return Linens 'n Things to an "everyday, low price" model it had pursued during its earlier years as a public company, sources told the paper.

It also will focus on improving the quality of its merchandise and keeping shelves stocked in timely fashion, the paper said.

Linens 'n Things filed for Chapter 11 bankruptcy protection in May, hurt by a slowdown in discretionary spending in the face of higher energy and food prices.

Linens 'n Things could not be immediately reached for comment.