How to lose your money _ Buy gift cards

[jal]

FYI…. before you do any holiday shopping, or get stuck with any unused or not honorable gift cards, take a look at the list below. Keep these stores in mind, you wouldn't want to purchase a gift card for someone that won't be able to use it!

Pass it on….
It seems there are lots of stores that are closing due to the "recession" and the fact that people are not shopping. If you have any "gift cards" from these stores, make sure you use them, or you will lose them !

Watch those store money cards and gift cards.. and credit slips! Stores that informed the Security Exchange of closing plans between October 2008 and January 2009. PLEASE PASS THIS ON TO ALL YOUR FAMILY AND FRIENDS.


Circuit City stores... most recent (? how many) CIRCUIT CITY OWNS FUTURE SHOP AND BEST BUY

Ann Taylor- 117 stores nationwide are to be shuttered

Lane Bryant,, Fashion Bug ,and Catherine's to close 150 store nationwide

Eddie Bauer to close stores 27 stores and more after January

Cache will close all stores

Talbots closing down all stores

J. Jill closing all stores

GAP closing 85 stores

Footlocker closing 140 stores more 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

Pacific Sunware closing 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

Lowes to close down some stores

Dillard's to close some stores.
----------

 

[Cyrus]

Wow, that's a long list. The majority of them sell junk though. I hardly shop at any of them as it is.

 

[WarPhalange]

Best Buy won't close down. The reason CC is closing down stores is because BB gets more customers.

 

[russ_watters]

Boy, I should have read this article and shorted some CC back in March!: http://news.cnet.com/8301-13506_3-9906512-17.html?tag=mncol;txt

 

[Proton Soup]

yeah, some of these are silly. 15 stores for Home Depot is 1% of the stores.

 

[OAQfirst]

Boy, I should have read this article and shorted some CC back in March!: http://news.cnet.com/8301-13506_3-9906512-17.html?tag=mncol;txt

Nonperforming receivables will simply be sold to debt acquisition companies. So if anyone had shorted them, they can still expect some phone calls in the near future.

On the other hand, debtors can almost always negotiate down the debt quite a bit in that case. I know one company that tolerates a 40% loss on their assets.

 

[turbo]

Be aware that some gift cards expire if not used within a time-frame that may or may not be clearly stated. Instead of protecting consumers, some states are trying to horn in on the unredeemed balances, so beware.

It is best not to buy gift cards in the first place unless something (like the convenience of being able to mail a card to someone far away) really compels you.

How smart is it to go to a store, and agree to tie up some of your money so that it can ONLY be spent at that store? Send your nephew a personal check, instead. He can use the money wherever he wants, and in whatever denominations. If you send him a card, he will HAVE to spend it at the store of your choosing, and will have to buy more merchandise than the card is valued at to avoid leaving a balance on it. This is win-win for the store no matter how it shakes out.

 

[OAQfirst]

My brother sent me a Best Buy card. Since there's none near where I live for more than a hundred miles, I tried to use it on their website, as the card indicated I could do. When I tried to enter in the card number, wouldn't you know? The card had four digits more than the web page allowed to be entered. I tried it without the first four and the last four, but no good. And the email reply was useless.

Gift cards make no sense to me.

 

[shannonk]

Hi Everyone

Jal posted a comment from a viral email ... this is not true.

 

[turbo]

Hi Everyone

Jal posted a comment from a viral email ... this is not true.

OK, PF'ers. Don't bother buying gift cards there for the reasons I gave in a previous post. It's pretty stupid to take your hard-earned cash, lock it in so that it can only be spent in said store, and then give that "gift" to somebody who has to use it to buy products of more cost than the card you have given them, lest they leave a balance on the card. Gift cards are a rip-off.

 

[Evo]

The Evo Child loves gift cards, she lives on them. I also enjoy getting them. They never go long without getting used.

 

[turbo]

The Evo Child loves gift cards, she lives on them. I also enjoy getting them. They never go long without getting used.

Would you rather that I sent you a $50 gift card that can only be used at "Spatulas R Us" or a personal check for $50?

Edit: not everybody uses cash (or equivalent) gifts for themselves. My wife and I live pretty simply, and we don't need a lot of "stuff" cluttering up our lives. My father loves to give me (and all his kids) checks, well before Christmas. My wife and I bank ours, and concentrate on keeping him happy. Today, my wife roasted two pork loin roasts (I made the brine yesterday), and after she was relieved by her sister (tending to her mother) she drove up to my father's place to drop off a roast and gravy. He's pretty generous with his Christmas checks, considering that he's living on SS, and we pay him back in spades with home-cooked foods, home-canned goods, pickles, etc. I had to argue with him for weeks to convince him to cash in a CD and buy a decent AWD vehicle - he wanted to leave that money to us kids. When people are approaching their mid-80's, they can get pretty headstrong and independent.

Ever since we negotiated the purchase of that vehicle (2009 Forester) friends and neighbors of my father have been telling me how pleased he is. Sure beats the crap out of that old Buick Park Avenue Ultra - I don't care how many "features" a car has - the most important feature is that it always gets you home and doesn't strand you in weather that can kill you if you try to hike out of it.

 

[Evo]

Would you rather that I sent you a $50 gift card that can only be used at "Spatulas R Us" or a personal check for $50?

Either would be fine!

As long as you give someone a gift card at a store they shop at, there isn't a problem. You just need to use common sense. I'd prefer a prepaid credit card that I could use for anything, but I don't mind getting gift cards from people. Of course I prefer cash. :!)

My ex husband gives the girls gift cards so that they don't buy needless things like food or gas, or use the money to pay for rent. It also helps satisfy his shopping compulsion by letting him purchase 'something' from a store.

 

[turbo]

Either would be fine!

As long as you give someone a gift card at a store they shop at, there isn't a problem. You just need to use common sense. I'd prefer a prepaid credit card that I could use for anything, but I don't mind getting gift cards from people. Of course I prefer cash. :!)

My ex husband gives the girls gift cards so that they don't buy needless things like food or gas, or use the money to pay for rent. It also helps satisfy his shopping compulsion by letting him purchase 'something' from a store.

Bump! I spent time on an extensive edit that should have been a separate post.

 

[Vanadium 50]

Jal, why on Earth did you post this email chain letter here? It has all the veracity of your typical email chain letter: close to zero. Talbots is not closing all stores. Zales (who owns Piercing Pagoda) has closed 100 or so stores - but they have also opened 100 or so. Wickes has been in liquidation for almost a year, and is no longer selling gift cards.

You should be suspicious of anything that says "Pass it on to all your friends".

Posting something from such a dubious source here without bothering to check it shows a profound lack of respect for the truth and an equally deep lack of respect for us.

 

[jal]

Would you like to contradict the title of this thread?
Perhaps you have done an indepth analysis of the industry and can enlighten us?
I found the following analysist to get you started.

http://www.cbc.ca/news/background/economy/giftcards.html
IN DEPTH
Economy
Gift cards
The lure of plastic
Last Updated December 10, 2007
------
Respectfully yours,
jal

 

[Art]

Jal, why on Earth did you post this email chain letter here? It has all the veracity of your typical email chain letter: close to zero. Talbots is not closing all stores. Zales (who owns Piercing Pagoda) has closed 100 or so stores - but they have also opened 100 or so. Wickes has been in liquidation for almost a year, and is no longer selling gift cards.

You should be suspicious of anything that says "Pass it on to all your friends".

Posting something from such a dubious source here without bothering to check it shows a profound lack of respect for the truth and an equally deep lack of respect for us.

I checked a few on the list and it seems fairly accurate. The ones I checked all have mentions in the media of store closures?? Maybe the figures aren't exact but it's certainly not a total fabrication so in the context of the OP is valid.

http://www.bizjournals.com/cincinnati/stories/2008/01/28/daily56.html?ana=from_rss
http://retailconstructionmag.com/nm-newsshow.asp?story=368
http://www.bizjournals.com/dallas/stories/2007/12/31/daily25.html?ana=from_rss

 

[Vanadium 50]

Would you like to contradict the title of this thread?
Perhaps you have done an indepth analysis of the industry and can enlighten us?

I see...you're going with the "false but accurate" defense. I gave you a specific example that was totally false: Talbot's.

 

[Evo]

I checked a few on the list and it seems fairly accurate. The ones I checked all have mentions in the media of store closures?? Maybe the figures aren't exact but it's certainly not a total fabrication so in the context of the OP is valid.

http://www.bizjournals.com/cincinnati/stories/2008/01/28/daily56.html?ana=from_rss
http://retailconstructionmag.com/nm-newsshow.asp?story=368
http://www.bizjournals.com/dallas/stories/2007/12/31/daily25.html?ana=from_rss

Closing some locations is not the same as going out of business. As Vanadium pointed out it doesn't mention store openings. It's your typical scare tactic spam e-mail you see all of the time.

These are restructuring moves to improve their business model.

From your first link

Ann Taylor Stores Corp. will close 117 of its more than 900 apparel stores over the next three years, though the retailer didn't specify where shutdowns will take place.

The cutbacks are part of a restructuring aimed an improving the company's profitability as well as its efficiency.

 

[Art]

Closing some locations is not the same as going out of business. As Vanadium pointed out it doesn't mention store openings. It's your typical scare tactic spam e-mail you see all of the time.

These are restructuring moves to improve their business model.

From your first link

And from the OP

Ann Taylor- 117 stores nationwide are to be shuttered

Err yes. Exactly as per the link .

The point of the OP is that some currently nationwide stores may not be quite so nationwide in the not so distant future and so gift cards for such stores might be hard to use. The OP makes no claims that these companies are going out of business so I'm really not sure what your criticism is.

 

[Greg Bernhardt]

The point of the OP is that some currently nationwide stores may not be quite so nationwide in the not so distant future and so gift cards for such stores might be hard to use.

Most of those stores are online.

 

[Art]

Most of those stores are online.

Not much use for companies such as Wickes Furniture which are going out of business.

http://www.bizjournals.com/portland/stories/2008/02/25/daily35.html

 

[Evo]

Not much use for companies such as Wickes Furniture which are going out of business.

http://www.bizjournals.com/portland/stories/2008/02/25/daily35.html

I've never even heard of Wickes Furniture, it's not a national chain.

 

[Art]

I've never even heard of Wickes Furniture, it's not a national chain.

From the link I provided

Wickes, which operates 43 stores in greater Chicago, Los Angeles, Las Vegas and Portland filed for Chapter 11 bankruptcy protection Feb. 3.

It seems concern over gift cards stretches beyond mere internet fantasy

Gift card sales come under fire
By ROB VARNON
Staff writer
Updated: 11/24/2008 11:35:29 PM EST

With instability in the retail sector -- bankruptcies and rumors of store closings after Christmas -- warnings are growing about buying gift cards this holiday.

"Whatever their legal rights are, we are urging consumers to be very wary of gift cards," Attorney General Richard Blumenthal said Monday, citing the rough economy that has left some retailers fighting to survive.

People can choose to buy gift certificates or plastic gift cards for particular stores, or they can even buy gift cards that can be used like charge cards.

In addition to making sure they know all the terms and conditions of the card, Blumenthal said buyers should remember that each year, gift cards totaling millions of dollars go unused by their recipients.

Blumenthal did not come right out against buying gift cards, but did say, "As crass as it may sound, cash is often safer and happier as a gift."

The issue has arisen as more retailers face financial problems as consumers are cut back due to job losses and other financial pressures.

Linens-N-Things began going-out-of-business sales after an October announcement of its plans to close.

http://www.connpost.com/ci_11065546

Or how about that well known scaremongering spreader of viral emails Time magazine

For Retailers, 'Tis the Season to Be Nervous

Be careful whose gift cards you buy this season. As retailers struggle with recession, debt-laden consumers, unfriendly bankers and declining property values, fewer of them will be around next year. "By the end of 2009, the number of retail players will be down by at least 25% and could be down by as much as 40%," says Britt Beemer, chairman of America's Research Group, a consumer-research and marketing firm based in Charleston, S.C. "I expect the number of bankruptcies next year to be more than we've seen in the last five years combined."

http://www.time.com/time/business/article/0,8599,1861929,00.html?imw=Y

 

[Evo]

From the link I provided

They only operate in 4 cities, big whoop.

 

[turbo]

Consumer spending fell another percentage point last month, for the fourth straight month of decline. Durable goods purchases dropped by 6.2% - more than double the drop predicted by analysts. Since many retailers make half of their profit during the holiday season, and their sales are already poor, it would be foolish to buy gift cards unless somehow you know that they will still be in business and be willing to honor the cards when the recipients get a chance to spend them. Buying gift cards is like giving interest-free loans to companies that could very well end up in bankruptcy protection by the time Christmas/New Years rolls around.

Here's a question: If a retailer files for bankruptcy protection before Christmas (when most of the gift cards they sold are still wrapped up and unused), what happens? Will the recipients have to wait until a bankruptcy court tallies the assets and liabilities of the company, and perhaps accept pennies on the dollar?

http://news.yahoo.com/s/nm/20081126/ts_nm/us_usa_economy;_ylt=AkbCoTcBa7dAVn4dHlahH8CyBhIF

 

[turbo]

They only operate in 4 cities, big whoop.

They operate in the mid-west too, Evo. It's a regional chain, with a pretty big region. I had never hear of them either.

Carol Stream, Ill.-based Wickes announced that the sales will start Saturday at the company's 38 stores in California, Illinois, Indiana and Nevada, and will start later in March at five stores in the Portland area. The sales can run through June 30 in Portland and through April 30 in Wickes’ other markets, according to the agreement.

 

[mgb_phys]

There are a lot of companies that were going to go bust anyway - the boom just kept them hanging on.
In the UK, woolworths is closing down - it hasn't been a competative store for 30years but had enough property holdings to keep it's head above water, similairly for MFI.
But IKEA, Aldi and Tesco are thriving. When the going gets tough, the tough turn pro.

 

[Evo]

They operate in the mid-west too, Evo. It's a regional chain, with a pretty big region. I had never hear of them either.

They're only in a few cities if you look at their store listings.

 

[Evo]

There are a lot of companies that were going to go bust anyway - the boom just kept them hanging on.
In the UK, woolworths is closing down - it hasn't been a competative store for 30years but had enough property holdings to keep it's head above water, similairly for MFI.
But IKEA, Aldi and Tesco are thriving. When the going gets tough, the tough turn pro.

Wow, Woolworth's closed down in the US ages ago. They tried to update them them as Woolco, but that also failed. I used to go to Woolworth's all of the time when I was little.

 

[turbo]

Wow, Woolworth's closed down in the US ages ago. They tried to update them them as Woolco, but that also failed. I used to go to Woolworth's all of the time when I was little.

Woolworth's here had lunch counters, stamp-collecting supplies, needles and thread, photo-processing drops, toys, etc, etc. 45-50 years ago, it could be a treat to go there, though we never had much money to spend and spent a lot more time looking than selecting and buying.

Woolworth's specialized in low-cost stuff, so you could get a deal on generic envelopes, crepe paper, glue, cellophane tape, etc. Sam Walton probably looked at the Woolworth game plan and thought "not big enough".

 

[gravenewworld]

Never understood why people give out gift cards. Why not just cash? Cash is more liquid. Gift cards are simply just cash that you are forced to spend in one place. Seems stupid.

 

[gravenewworld]

Consumers lost 8 billion dollars on gift cards in '06

http://money.cnn.com/2007/11/12/news/gift_cards/index.htm?postversion=2007111217

 

[russ_watters]

That article was about unspent gift cards, not gift cards for companies that went under.

 

[gravenewworld]

That article was about unspent gift cards, not gift cards for companies that went under.

Yes I can read.