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The downturn in the economy could affect one of the items on your holiday shopping list this year.
Some big-name retailers are calling it quits or planning on closing their doors soon. If you have one of their gift cards, it could mean you're out of luck. But not all stores you may have heard are in trouble, actually are. Shopper Pam Foote said, "I'm just so sad that these long-standing businesses are going out of business."
They're the latest economic casualties. Nationwide retailers like Linens N Things and Mervyns are calling it quits. Bryan Tischner and his wife are taking advantage of the bargains. Bryan said, "I told her the business we need to be in now is making the 'going out of business' signs."
Foote is getting good deals but trying not to splurge. She says, "I'm still buying gifts and Christmas shopping, but I'm a little more careful about what I'm buying."
An e-mail going around says consumers should also be careful about buying gift cards. That e-mail warns that nearly 30 major stores are closing some or all of their locations after the holidays.
Some stores on that list, like Sharper Image, closed all its retail stores after filing for bankruptcy protection in February. This one in Trolley Square sits empty.
But others like J. Jill and Talbots, which are also listed, are not closing and plan to expand next year. A company spokeswoman issued this statement: "The e-mail that is circulating is completely false and inaccurate. We do not plan to close all Talbots and J. Jill brand stores and there is absolutely no concern in buying a gift card from either brand this holiday season.
"Our Company currently operates a total of 595 Talbots locations throughout the U.S. and Canada, and 283 J. Jill locations nationwide, as well as robust online and catalog divisions for each brand. Both Talbots and J. Jill opened new stores in 2008 and will continue to add new locations in 2009."
Kay Krill, president and CEO of Ann Taylor Stores Corp., issued this statement to its customer: "It has come to our attention that false and misleading information, regarding our Company and our store closure program, is circulating on the Web, as part of a hoax to scare consumers away from purchasing gift cards.
"Ann Taylor is a financially strong Company that operates nearly 1,000 Ann Taylor, LOFT, Ann Taylor Factory and LOFT Outlet stores across the U.S. In January 2008, we announced plans to close some underperforming stores, as part of a strategic restructuring program to make us an even stronger Company that can continue to serve you in the future. Our gift cards continue to be a popular and great option for gifting this Holiday season and can be redeemed at any of our stores, as well as online at anntaylor.com and anntaylorLOFT.com. We look forward to serving you again soon!"
But consumer advocates say the e-mail, whether it's completely accurate or not, gives people something to think about. Bill Hardekopt, CEO of www.lowcards.com, said, "Gift cards are a great thing. They're a wonderful present, but if the store goes out of business, you might be stuck holding the bag."
Hardekopf also says if you have a gift card, use is quickly because many expire or charge fees. He recommends buying a prepaid credit card or a mall certificate.
E-mail: syi@ksl.com
