If you intend to give gift cards around the holidays, you need to be careful that the cards will be honored after the holidays. Stores that are planning to close after Christmas are still selling the cards through the holidays even though the cards will be worthless January 1. There is no law preventing them from doing this. On the contrary, it is referred to as 'Bankruptcy Planning). Below is a partial list of stores that you need to be cautious about.


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 store s 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 8 5 stores
Footlocker closing 140 stores mo re 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

NOTE: It appears that American Express is underwriting many of the malls' own gift certificates -- you purchase at any mall's main office and then use them just as you would a credit card, at any of the stores in that mall. Additionally, they will replace, if misplaced, as long as you have recorded the certificate number safely somewhere else.

Opt for 'open loop' gift cards
The major credit card issuers — American Express, MasterCard, Discover and Visa — all offer gift cards. Most mall operators also offer gift cards that can be used in all of their stores.

These cards can be used anywhere, eliminating the need to gauge the financial health of a specific retailer. But they also contain more restrictions than gift cards issued by individual retailers. Visa gift cards expire after one year, MasterCard gift cards after 24 months, according to Bankrate.com's annual survey of gift cards. American Express gift cards have no expiration date but impose a $2 monthly service fee after 12 months (the service fee is deducted from the balance on the card). None of the gift cards from the nation's 25 largest retailers have expiration dates, according to the National Retail Federation.

Most open-loop issuers also charge a fee to buy their cards. Fees range from $3.95 to $4.95 per card, depending on the bank that's issuing the card, according to Bankrate.com. If you're buying gift cards for a large number of people, those fees can add up.

 

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