13 replies to this topic

[WreckWench]

Be careful buying gift cards this christmas, because if the store goes bankrupt the gift cards are worth nothing...just like with sharper image last year... If you have any right now, perhaps you should spend them too...


I wanted to give everyone a heads up that if you intend to give gift cards around the holidays, you need to be careful that the cards will be honored after the holidays. Stores that are planning to close after Christmas are still selling the cards through the holidays even though the cards will be worthless January 1. There is no law preventing them from doing this. On the contrary, it is referred to as 'Bankruptcy Planning'. Below is a partial list of stores that you need to be cautious about.



Check the list of stores below where you may not want to buy gift cards.

1. Circuit City (filed Chapter 11)
2. Ann Taylor- 117 stores nationwide closing
3. Lane Bryant, Fashion Bug and Catherine's to close 150 stores nationwide
4. Eddie Bauer to close 27 stores and more after January
5. Cache will close all stores
6. Talbots closing down specialty stores
7. J. Jill closing all stores (they are owned by Talbots)
8. Pacific Sunwear (also owned by Talbots)
9. GAP closing 85 stores
10. Footlocker closing 140 stores more to close after January
11. Wickes Furniture closing down
12. Levitz closing down remaining stores
13. Bombay closing remaining stores
14. Zales closing down 82 stores and 105 after January
15. Whitehall closing all stores
16. Piercing Pagoda closing all stores
17. Disney closing 98 stores and will close more after January.
18. Home Depot closing 15 stores 1 in NJ ( New Brunswick )
19. Macys to close 9 stores after January
20. Linens and Things closing all stores
21. Movie Galley Closing all stores
22. Pep Boys Closing 33 stores
23. Sprint/Nextel closing 133 stores
24. JC Penney closing a number of stores after January
25. Ethan Allen closing down 12 stores.
26. Wilson Leather closing down all stores
27. Sharper Image closing down all stores
28. K B Toys closing 356 stores
29. Loews to close down some stores
30. Dillard's to close some stores

[shadragon]

Whew... Victoria's Secret is not on the list.

[Cajun Diver]

Here's a link that has a lot of information about that list:

Store Closing info on Snopes.com

[WreckWench]

Great info...

But do keep in mind that gift cards are not 'timeless'. They typically expire 1 year after purchase so don't wait too long to redeem them!

[peterbj7]

I don't know about American law, but in Britain if it is possible to prove that vouchers were being sold which could not in fact be redeemed because of an action by the seller then the principals of that business (directors, senior managers, etc) would be guilty of fraudulent trading and personally liable for those debts of the business.

The rub is proving it. Just think - I was about to pay Circuit City for a new computer. I wonder if I would ever have received it.

[WreckWench]

I don't know about American law, but in Britain if it is possible to prove that vouchers were being sold which could not in fact be redeemed because of an action by the seller then the principals of that business (directors, senior managers, etc) would be guilty of fraudulent trading and personally liable for those debts of the business.

The rub is proving it. Just think - I was about to pay Circuit City for a new computer. I wonder if I would ever have received it.

Check the link on snopes I think you are safe with CCity...besides the issue is on gift cards that will be used later...not immediate online purchases.

[drbill]

Whew... we have none of those stores here on the island (and, sniff, no Victoria's Secret either... besides, what's so secret about that place anyway?).

The only gift cards I have are from Borders and thankfully they don't expire... I've had one for three years and the other for two.

Good info to keep in mind.

PS I give cash to the nieces, nephews and my son. It is much easier to ship and they prefer it. Of course if the federal government keeps giving away money, my gifts may also be useless soon.

Edited by drbill, 02 December 2008 - 10:06 AM.

[Divegirl412]

Before making decisions based on this email making the rounds, check your sources for urban internet hoaxes like snopes etc AND check with the store. Cache for example is listed as closing down. Since it is one of my favorite stores, (and I am already traumatized by Linens and things closing ), I asked them about the closures last week. They are closing only the few stores that sold their higher end clothing lines.. the Cache luxe line (although their regular stores are quite high end themselves by my standards!!!). The other stores will stay open. So do your research first...

[Landlocked Dive Nut]

The only gift cards I have are from Borders and thankfully they don't expire... I've had one for three years and the other for two.

A gift card from Borders would not last three weeks in my pocket, much less three years! Dr. Bill, go find a good book and kick back for a while this weekend!

[shadragon]

Circuit City closes 567 stores

[BeachJunkie]

NOOOO not Pac Sun! I serioulsy by 90% of my clothes from that place! Damn, I guess the economy is still suckin pretty good back there. I guess I'll have to find somewhere else to get my clothes when I get home.

[peterbj7]

The only gift cards I have are from Borders and thankfully they don't expire... I've had one for three years and the other for two.

A gift card from Borders would not last three weeks in my pocket, much less three years! Dr. Bill, go find a good book and kick back for a while this weekend!

Maybe there isn't a Borders on his island.....

[peterbj7]

Circuit City closes 567 stores

The world is going to look very different after this is all over. I've always felt Circuit City was an "also ran" in the electronics business and I'm not surprised it's going. I'm much more surprised at the demise of Mervyns. In Britain we're losing household names almost every week, sometimes firms that weren't well run and were prime candidates, but some others that were thriving and much in demand but which were caught at the wrong point in the credit cycle. My brother's business, employing only around 30 people, lost US$6m early on with the collapse of the Icelandic banks, and times are very lean there right now.

[Penguin]

As long as that list is, I trhink it is only the tip of the iceberg.......unfortunately. With the financial outlook of many corporations as bleak as it is, when giving gift cards as gifts, I'm only giving prepaid Visa/MC.