Folks, the economic tsunami has taken down yet another retailer – Linens ‘n Things. As I reported in this piece back in April, Linens ‘n Things has been struggling under the weight of the economic downturn. The company filed for bankruptcy reorganization in May, hoping to come out of bankruptcy as a leaner, more focused company. It appears things did not work out that way.
The company has therefore abandoned its reorganization plan and has auctioned its assets to the highest bidder. As a result, beginning Friday, October 17th, all remaining 371 Linens ‘n Things stores in the United States will begin their “Going out of Business Sales” where their entire inventory will be sold at a discount.
What does this mean for gift card holders? If you currently hold a Linens ‘n Things gift card, you may be out of luck. As I mentioned back in May, the gift cards were redeemable while the company was undergoing reorganization. But now that they have decided to liquidate the business, your card may be worthless. However, I encourage you to try and see if they will accept your card during the liquidation sale (please be kind and post your findings in the comments section to help others in a similar predicament :):)
Which brings me to the question of why the company did not alert gift card holders to come in and redeem their cards when they knew they were going under? I will explore this issue in another article since the same thing happened with The Sharper Image when they abandoned their reorganization plan and decided to liquidate the entire business, leaving gift card holders with worthless gift cards.