I agree that they are probably not going out of business, though it may be closer than it seems. The article suggests they're now going to be running on a 2% margin after the clearance. Even if things get worse, they can probably afford to run in the red for some significant period of time (and perform various liquidations to get back into the black if necessary), but that's a quite unstable scenario.

The issue with a retailer going out of business is not the retailer itself, but the manufacturers behind it. Target failing to sell their product reflects large numbers of manufacturers being unable to sell their product.