Gift Cards May Have No Value

by Jim Spencer on November 28, 2008 · 1 comment

Gift Cards are awesome for business cash flow. You give them cash and they give you a plastic card.

The consumer problem develops when the gift card provider goes out of business and the card becomes, well, just a plastic card with no value. I still have a useless CompUSA gift card.

There is no law preventing stores that are planning on going out of business from selling gift cards.

Below is a partial list of potential closings.  Gift Card givers beware.

Update:This information may be dated, business plans may have changed or it could be just wrong. But, the buyer beware notion remains relevant.

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 more 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

Big Dog stores is closing all stores Dec. 31

{ 1 comment… read it below or add one }

1 Jim June 18, 2011 at 1:55 am

I have never been a big fan of gift cards at all for a couple reasons.

1. You are forced to buy from the store they are purchased (duh :p)
2. Kind of and easy way out for gift givers, you get someone something with little value / not knowing who the person really is.
3. Going out of business, like you stated above, it is kind of a good way to steal money from people if they do not use it right away.

but anyway it is an interesting read keep up the blog!

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