GiftCardRescue Blog

According to a story in the march 4^th edition of the Chicago Tribune, an estimated $75 million worth of gift cards are at risk of becoming worthless as the companies that issued them file for bankruptcy.

With 2008 retail bankruptcies and liquidations expected to reach the highest levels since the 1991 recession, consumers holding on to gift cards may soon find some of them worthless should the card issuers go under.

As explained in a previous post, when you purchase a gift card, you are essentially giving the card issuer an unsecured loan, which makes you a creditor to the company until you redeem the full value of the card. When the company files for bankruptcy, gift card redemptions are usually suspended and all creditors of the company must file their claims through the bankruptcy court.

As an unsecured creditor, your chance of getting your money back through the bankruptcy process is next to nothing. So, if you would rather not waste your money, consider using your gift card soon; especially if there are signs the company may not be around for long.

Card Details:

• No Fee
• No Expiration Date
• Redeemable Online & In-store
• Accepted by Multiple Merchants
• Not Replaceable When Lost

Note: Barnes & Noble gift cards can also be redeemed at any B. Dalton Booksellers.
To see more Books & Music gift cards, including reviews and ratings, click here

As a follow up to the previous story on the suspension of gift card redemption by bankrupt Sharper Image, Fox News is reporting that competitor Brookstone is offering current Sharper Image gift card holders an instant 25 percent savings off a Brookstone purchase. Customers who accept this offer must relinquish their Sharper Image gift card to Brookstone. 
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Brookstone would honor any valid Sharper Image gift card, regardless of value, and includes Sharper Image rewards cards, gift certificates or merchandise certificates. However, the real disappointment is that the discount does not apply to Sony, Celestron, Bose, Panasonic and Tempur-Pedic products.

But given that holders of Sharper Image gift cards may end up getting next to nothing through the bankruptcy process, a 25% discount on a humidifier at Brookstone may not be a bad deal.