It doesn't appear that Dillards has filed a bankruptcy proceeding, however, they are liquidating some stores which is not a good sign. This usually means they have under performing stores. When a chain starts liquidating stores, it means they are trying to get themselves in a profitable position again.

Once the under performing stores are closed, the hope is that the better stores will still be profitable and the chain can continue. However if all the stores are under performers, sooner or later they have to throw in the towel and close all the stores. If they don't want to close all the stores, they will then file bankruptcy and try to restructure their debt load in hopes that they can cut enough expenses to become profitable again.

The retail environment is very competitive. Dillard's could perhaps file bankruptcy to try to get in a good position again but if the customers don't really like their stores, it will be like rearranging deck chairs on the Titanic. It really won't make a difference.