New wrinkle at Pacific Linen: no more stores until shortage of growth capital is ironed out. (Pacific Linen Inc.)

Pacific Linen Inc. has exhausted last year's $10 million infusion of growth capital and placed 1996 expansion plans on hold until it can find additional investors. The Bothell-based retailer has hired an investment banker to seek funds for a harder push into Canada, the primary focus of its growth strategy, said William Shepard, president and chief executive of the 52-store chain. While declining to specify the amount of capital needed, Shepard said the company hopes to secure the funding within six to nine months.

Until then, the company can't afford to open new superstores - including a long-planned downtown Bellevue location whose landlord is now suing Pacific Linen. …