According to this story, Linens ‘n Things may be going under soon. There is speculation that the company may file for bankruptcy if it does not find a buyer soon. If you currently have a Linens ‘n Things gift card, now is the time to use it or lose it. Actually, if you have a gift card you’ve been holding on to for a while, you might want to use it soon.
Considering that we are already in a recession (i don’t know why the government won’t just come out and admit what majority of consumers already know and feel) and don’t know how long it will last, many struggling retailers may have no option but to file for bankruptcy protection.
When a company files for Chapter 11 bankruptcy, federal law allows the company to stop honoring gift cards. However, the company may petition the bankruptcy court to continue the redemption of gift cards. My advise is that when buying a gift card, keep your eyes and ears open regarding the company you are buying from. Avoid buying gift cards from companies that are struggling as you may loose your gift card should the company go under.
To show you how serious things can get, AOL recently asked its users to predict which national retailer may be next to go under. While this is just user opinion, it is not hard to spot trouble with a retailer. When you visit the store and you are always the only one shopping, you know something is wrong. Below are the companies that made the list from the AOL survey:
Linens ‘n Things
The Bon Ton
The Children’s Place
Rack Room Shoes
Of the retailers mentioned above, my own prediction is that in addition to Linens ‘n Things, The Gap, Circuit City, Sears, Kmart, Pier 1, and Office Depot are more likely to bite the dust. The least likely is Starbucks. I know Starbucks is struggling but they are far from bankruptcy.
Readers, do you agree with the AOL list? Is there a retailer you would like to add to the list? Post your comments in the comments section below.