The recent move by retailer Linens 'n Things to defer a quarterly interest payment of approximately $16.1 million may not only have started the company on a path to bankruptcy, but it likely also signals trouble for the retail industry in general. Linens 'n Things is the first large retailer of its kind to find itself close to bankruptcy during this credit cycle, but it may be the tip of a very large iceberg, as market observers think we are on the verge of a flood of restructurings and bankruptcies.
"It's going to be like watching sausage made. It's going to be very ugly," said Barry Ridings, vice chairman of Lazard. He said he has been watching bankruptcy filings this credit cycle move through different industries. "Retail hasn't been huge yet, but all of us think that it's coming," said Ridings. "What's the old saying? 'I've been …
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