Circuit City, the electronics retailer may go out of business if a buyer is not found by January 16, 2009. The company, which filed for Chapter 11 bankruptcy protection in November 2008, had planned to reorganize and stay in business.
What was unusual was that Circuit City was still issuing new gift cards after filing for Chapter 11 bankruptcy protection, further worsening its debt obligation. If the company goes out of business, it will definitely have to continue the redemption of gift cards during any liquidation sale to allow gift card holders to redeem their cards. This is because the company made a conscious decision to sell gift cards during the holiday season despite their shaky financial position.
If you have a Circuit City gift card, use it NOW or risk losing it.