Stores that are planning to close after Christmas are still selling the cards

[Joe8915]

Good information.

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 'Bankrupcy
Planning. Below is a partial list of stores that you need to be cautious about.

Circuit City (filed Chapter 11)
Ann Taylor- 117 stores nationwide closing
Lane Bryant, Fashion Bug ,and Catherine's to close 150 stores nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down specialty stores
J. Jill closing all stores (owned by Talbots)
Pacific Sunwear (also owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores mo re to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January.
Home Depot closing 15 stores 1 in NJ ( New Brunswick )
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pep Boys Closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores.
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Loews to close down some stores
Dillard's to close some stores

 

[Vassago]

It's not completely accurate. A little more information can be read here:

http://www.snopes.com/politics/business/storeclosings.asp

and here:

http://www.snopes.com/politics/business/bankruptcies.asp

 

[Joe8915]

Thats why I started out with "Good information" and ended with "cautious about".

Bottom line I know I won't be buying gift cards.

 

[Vassago]

Also, even if the store close to you does close down, you can always use the gift card online for most of these retailers.

 

[Fifty2One]

With bankruptsy in USA it is important to understand the difference between Chapter 11 and Chapter 7. Chapter 11 means a reorganization in order to remain in business, chapter 7 means the buisiness will be liquidating all of its holdings in order to settle its debts. Anyhow I do not think gift cards are a good idea at all. All a gift car does is give money to people without receiving any goods, might as well just give the same to a charity and offer the receipt as a gift. That helps out someone with true needs AND the person with the receipt can claim the donation at tax time.

 

[Steve R.]

Gift cards and bankruptcy

Not worth the plastic they're printed on

Since I consider a gift card to be a prepayment for a good, I find it surprising that a company, when it enters bankruptcy, can refuse to honor the card. Bige1030 wrote "The law basically says that gift card holders are creditors of the company, and they fall pretty low in line (but not dead last). What the law says is that creditors who are above gift card holders in line get the money first. If you disagree with the law, let your U.S. Senator or Representative know that you want a different kind of bankruptcy reform!"