On May 2, Clifton-based headquarters announced it had filed Chapter 11. Immediately, 120 stores closed. Before long, more than 200 stores across over 35 states had closed shop. Now, the remaining 371 stores are liquidating and approximately 17,500 workers will be unemployed as a result.

Chain officials had hoped an auction on Tuesday, Oct. 14, would help save them, but it was canceled when they were unable to find a competitive buyer interested in keeping the 25-year-old company afloat.

"The Company, unfortunately, given the current economic crisis, was bought out by a number of groups who are interested in liquidating its remaining assets," Rich Tauberman, a Linens spokesman said.

Michael Gries, chosen by the board of directors in May to be the chief restructuring officer and interim CEO, had hoped to operate the company as a small business until the real-estate market stabilized and, "people [were] going to be looking to redecorate." Timing was a big help for the company, which acted fast in order to prevent further losses as competing stores began dropping prices for the holidays.

The liquidators who triumphed include names such as Hilco Merchant Resources, Gordon Brothers Retail Partners, Great American Group, Hudson Capital Partners, SB Capital Group and Tiger/Nassi Group. With roughly $500 million in inventory, the offer to purchase the remaining stock at $.95 for every $1 - totaling roughly $475 million - was the only way to go.

That Tuesday at 10 a.m. in Paramus, it was a slow retail day for Linens ‘n Things. Customers, comprised mostly of women, shopped oblivious to the fact that the store could be closing.

"I didn’t know they could be closing," said Rose, from River Vale. "I went to K-Mart today and they didn’t have what I needed so I came here. At this stage of the game, I don’t really care where I shop."

Others were more conscious of the bigger picture. "As a consumer, I don’t like that the competition is going away. This gives Bed, Bath & Beyond a chance to raise their prices," said Ronni Stark, a 22-year resident of Woodcliff Lake. "Competition keeps them honest."

The staff had far less to say, a result, they said, of being told to keep quiet.

They, too, went about their day normally, as if the security of their jobs was a non-issue. The employees refused to comment and management was also tight-lipped.

"No, I am not nervous," smiled Jessica, one of the store managers, "But I cannot say anything."

A week later and Linens has an enormous "Going Out of Sale" banner outside. Neon posters that read 10% - 30% off occupy nearly every window, corner and stanchion throughout the store. Surprisingly, the staff hustles busily to help a number of customers that has grown by at least five times since the previous visit.

"There will not be any coupons accepted, nor returns or exchanges," said one employee, adding "All sales are final." Even so, and with the discounts not yet extraordinary, this does not stop the public from ravaging the shelves now before there is nothing left.

As for the welfare of the roughly 17,500 soon-to-be jobless, Tauberman said that he just cannot say. "There is a variety of options available, but I cannot comment further at this time."

Even the staff still refuses to talk. One man said they will be offering severance to employees who stick around, however, he does not reveal how much they will be receiving.

On a New York Times blog dated Oct. 17, one user wrote that he is an ex-employee and that: "I worked for LNT for 13 years. The store I worked in closed its doors on August 17, 2008 at 2:30 in the afternoon…I stuck it out for the severance and since it was taxed at a much higher rate than regular pay, my severance was a little over $300."

At the Clifton headquarters, morale was low.

Employees stood around idly, their faces and spirits down. Many dodged reporters, hoping the next day would bring about better news regarding their future. Yet some of them said they were upset, and agreed to answer questions, albeit anonymously.

One woman was on the verge of tears. "This is a global problem, and it won’t be easy to recover. I’m just not as marketable as some of the others, but I’m a fighter." She said she was optimistic, unlike another gentleman who spoke out about how it took him a while to find this job. He had only been there about a year, which concerns him regarding what kind of severance he might get paid. Or whether he would get any at all.

On another New York Times blog dated Oct. 14, an anonymous poster claiming to be an insider writes, "The rumor is at the home office, only 175 will be getting a severance package, all the rest nada. Plus about 7-9 big boys ([F. David] Coder, etc) will be getting a nice $150,000 bonus."

According to one employee, roughly 500-600 employees work in the Clifton headquarters.