LOS ANGELES (Reuters) - Linens 'n Things, the struggling seller of textiles, housewares and other home goods, said on Thursday it hired investment bank Financo Inc as financial adviser to assist in evaluating various strategies.

The company, owned by affiliates of billionaire investor Leon Black's firm Apollo Global Management, is in talks with a committee of its debtholders about altering its capital structure.

Earlier this week, the company said it had delayed a $16.1 million interest payment and said its lenders had agreed to delay exercising their right to stop making loans to the company.

Last week, the Wall Street Journal reported the company could file for Chapter 11 bankruptcy protection in what would be among the biggest failures by a business acquired during the recent private equity boom.

Linens 'n Things, which posted a $242.1 million net loss in 2007, blames its financial problems on the credit crunch, the housing downturn and the slowdown in consumer spending in the United States.

(Reporting by Alexandria Sage; editing by John Wallace/Jeffrey Benkoe)