In the past few years, not only were banks and hedge funds willing to find a way to give loans to desperately struggling companies, but most companies were able to get debtor-in-possession financing to weather bankruptcy. Retailers like Linens N Things might have had the option to enter bankruptcy protection, exit troublesome leases, and shape up its business.

Is Linens N Things impending liquidation a sign that retailers and companies in other industries will be forced to liquidate irather than rework a business in bankruptcy?