Use a towel rod on the inside of the linen closet for holding blankets. (this is a good idea for back of guest room door too so if guests need extra blankets, they are easy to find): linen closet organization idea
Linen Closet: Roll with It. Save space in a shallow linen closet by rolling up towels instead of folding them. Put lost space to use by installing towel racks on the back of the door to hang wrinkle-susceptible linens, such as tablecloths.