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Re-activateBankrupt retailer Linens 'n Things is just days away from auctioning off the company, possibly to a bidder that could close and liquidate the company's remaining stores. But you wouldn't know it by looking at the Linens 'n Things Web site, which continues to market the store's gift cards with values as high as $200.
You might expect that the company, which filed for bankruptcy reorganization in May, would alert gift card buyers of its precarious financial situation so that they could decide whether to take a chance on getting stuck with a worthless or near-worthless card if the company shuts down operations. That's what defunct Sharper Image did earlier this year. Such an alert might even be more warranted now that Linens 'n Things has abandoned its reorganization plan and scheduled an Oct. 14 auction, with the approval Friday of the federal bankruptcy court.
Rich Tauberman, a Linens 'n Things spokesman, says the company as late as Friday remained in discussions with potential bidders that would operate the stores. But he said he believed gift cards would continue to be honored whether a new owner operates the stores or liquidates them."We have every expectation that gift cards will be honored in our stores with whatever happens," Tauberman says.
But based on what happened with Sharper Image, we recommend caution. In that case, the chain first stopped accepting its cards, then resumed accepting them under certain circumstances, and then closed its store altogether, stranding gift card holders.
So if you have a Linens 'n Things gift card, we advise you to use it immediately, preferably this weekend. If you're thinking of buying a Linens 'n Things gift card, think again. —Anthony Giorgianni
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