Gift cards are a popular choice for gifts, when you are not sure what to get someone a gift card to a popular store can be the perfect gift. Few people give any thought to the financial stability of a store when they purchase a gift card, but with the current economic downturn bankruptcy of retailers has become a very common occurrence. If you think your gift card will be protected from a company’s creditors think again!
When major retailers go out of business the gift cards are worth nothing, they become a useless piece of plastic. When the Sharper Image filed for chapter 11 bankruptcy they no longer accepted gift cards. Finally after a battle the Sharper Image offered consumers the chance to use their gift cards as a 50% off coupon. Several months later all the retail locations were closed and the cards were worth nothing.
Linens ‘N’ Things went bankrupt in later 2008 forcing many of its consumers scrambling to use their gift cards before the inventory was gone. When Linens ‘N’ Things finally closed its doors over $100 million in gift cards was lost forever.
There are a few things consumers can do to protect themselves. Do not buy gift cards for stores you know are having financial trouble, use your gift cards as quickly as possible and sell gift cards you do not plan on using anytime soon. There is no reason to hang onto gift cards for more then a couple weeks. If you really need a gift card use it, if you do not need it sell your gift card for cash. Giftah will get you cash for your gift cards, just sign up for the site and you will be connected to thousands of people who want to trade you cash for your gift cards. Don’t risk losing your gift cards value to bankruptcy sell it, use it or lose it!