Depends on what the lease says but in general just closing doesn't get them off the hook. A closing, while not good, may not stop the rent and the tenant may secure a sub-tenant for the property(look at the lease). A bankruptcy on the other hand can be really bad for you. If they reorganize under bankruptcy they will probably get off the hook on the lease if the site is not profitable? If they go chapter 7 they are out of business and gone. As a landlord I believe you are considered an unsecured creditor (check with a bankruptcy attorney) and therefore one of the last to get paid and probably not at all. Hopefully you have a good location that another tenant will be interested in (although highly likely you will get a lower rent which will lower the value).
May 8, 2009