Linen's 'N Things

One of the larger named retailer's that recently closed it's doors was Linen's 'N Things. With similar companies, like Bed, Bath & Beyond still operating, one may wonder what forced the retailer to liquidate. According to an article posted in a New York Times online blog, the decline in the housing market, along with the slump in consumer spending undermined the company's ability to pay it's suppliers. ( http://dealbook.blogs.nytimes.com/2008/10/14/linens-n-things-to-liquidate-after-failing-to-find-a-buyer/ ) The article goes on to say that there was some hope of a buyer purchasing the company however, nothing worked out in the end.
Another article from reuters.com explains that the money that is made in the liquidation sale will go to pay off the company's creditors, but many of its lower tier unsecured creditors are unlikely to receive anything back. ( http://www.reuters.com/article/governmentFilingsNews/idUSN1535213520081015 ) All in all, the company had 371 retail locations in the US and others in Canada. The stores were closed over a span of 11 weeks.
In my opinion, I can definitely see why Linen's 'N Things had to close it's doors. It makes sense that if people are not buying houses, then they do not need items to furnish, decorate, or accessorize them. It is interesting, however, that other stores of the nature, such as the aforementioned Bed, Bath & Beyond are still operating as though nothing has changed. Perhaps, before it's all said and done, other stores will also have to declare bankruptcy and liquidate. It is definitely obvious that the fate of Linen's 'N Things was determined by the economical problems that are plaguing the United States. In perspective, this was just one of many companies having to make similar decisions.