Last chance to use Linens 'n Things gift cards

Bankrupt retailer Linens 'n Things, unsuccessful in its attempt to find a bidder who would continue to operate the company as a going concern, will begin liquidating its remaining 371 stores nationwide on Friday.

A representative of the consortium of companies that is handling the liquidation said the stores will accept the retailer's gift cards and merchandise certificates at the going-out-of-business sales, which are expected to last 11 weeks. That's good news, since holders of Sharper Image gift cards and certificates were unable to redeem them when that chain liquidated earlier this year.

Linens 'n Things was continuing to offer gift cards on its Web site until Wednesday, at least two days after it told the bankruptcy court that it was unable to find a bidder who would continue to operate the stores. A company spokesman said he could not explain why gift card sales continued that long.

We've said it many times but this advice bears repeating: If you're holding a gift card, use it as quickly as you can. As the economy continues to takes its toll on businesses and financial institutions, gift card holders run the risk of getting stuck with worthless plastic should the issuer fail.—Anthony Giorgianni