Warning About Shopping For Gift Cards This Holiday Season!

Gift Card Warning: Check Retailer's Health

Two-thirds of shoppers plan to give gift cards this holiday season, making those little plastic cards the second most popular gift after clothes, according to a national survey by Consumer Reports. But some experts warn that these gifts could be worthless if the current trend of retail bankruptcies continues.

Diane Turton wants to give you the heads up that if you tend to give gift cards around the holidays, you need to be careful that the cards will be honored afterward.

Stores that are planning to close after the holidays are still selling 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 closing nationwide
Lane Bryant, Fashion Bug and Catherine's to close 150 stores nationwide
Eddie Bauer to close 27 stores; More to close after January
Cache will close all stores
Talbots closing down specialty stores
J. Jill closing all stores (owned by Talbots)
Pacific Sunwear closing all stores (owned by Talbots)
GAP closing 85 stores
Footlocker closing 140 stores; More to close after January
Wickes Furniture closing all stores
Levitz closing remaining stores
Bombay closing remaining stores
Zales closing 82 stores and 105 after January
Whitehall closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores; More to close after January
Home Depot closing 15 stores; 1 in NJ (New Brunswick)
Macys to close 9 stores after January
Linens 'N Things closing all stores
Movie Galley closing all stores
Pep Boys closing 33 stores
Sprint/Nextel closing 133 stores
JC Penney closing a many stores after January
Ethan Allen closing 12 stores
Wilson Leather closing all stores
Sharper Image closing down all stores
KB Toys closing 356 stores
Loews to close some stores
Dillard's to close some stores

It is estimated that consumers will lose about $100 million this year on gift cards due to bankruptcies. If you are still holding on to gift cards from last Christmas or birthday, now is the time to use them. If you are planning to purchase gifts cards as presents this year, check up on your retailer's health or opt for a "Mall Gift Card” instead.