The possibility of Linens 'n Things filing for Chapter 11 bankruptcy has been on our radar for two weeks. While they attempted to avoid this decision by postponing debt payments and searching for a buyer, they were unable to come up with another solution and today the company filed for Chapter 11 protection.

With its 500 US stores the company is second to Bed Bath & Beyond in terms of housewares chains, and according to the New York Times Linen's 'n Things plans to close 120 stores. The fate of your gift cards is up in the air, as federal law says Linens 'n Things isn't obligated to honor the cards since filing for Chapter 11 bankruptcy.