Not really. There is tremendous opportunity cost involved in continued malinvestment. Those employees could have better jobs with better future promotion and pay raise prospects. Those customers might be better served by someone else. Those creditors will lose less money if they don't extend-and-pretend. Others who could be using the failed company's resources instead (especially if acquired at fire-sale prices) will have to wait if the company fails slowly.

These things really have to be considered. Imagine a gym in an extended decline. Its locations and machines will not get enough maintenance, and will lose value faster, thus losing more customers sooner too, which will make extend-and-pretend yield even worse results. Better fail quickly or find management that can turn things around.