HOUSTON – Several big name retailers are hinting at mergers, buyouts and bankruptcies. That means gift cards from those stores soon be worthless.
The bankruptcy saga of Radio Shack is a prime example of the gift card bust. After March 31, no matter what value was left on the card, Radio Shack cards were worthless.
"Suddenly, because the store is essentially closed, now the card is not usable and that bothers me," said Shelly Hunter, of Gift Card Girlfriend.
Hunter tracks trends in the gift card industry. According to the "Wall Street Journal," unused Radio Shack gift cards totaled $44 million.
Hunter said companies make buyout deals and bankruptcy court agreements that make gift cards go away. Her latest gift card casualties include Debs, Delilah's, Skymall, Cache and, of course, Radio Shack.
"I don't want people to be skittish over gift cards, so what I would say is the problem with gift cards is, they wait too long to use them," Hunter said.
Other gift card "gonners" include Sharper Image, Borders, Coldwater Creek and Linens and Things.
"But somewhere online, the store's are still there. The issue again is (that) a company bought the merchandise and then rights to the name and the company that bought the merchandise says, ‘Sorry, we are not honoring these gift cards.'"
Hunter is also tracking retailers that are closing stores this year. On her watchlist right now is Sears, JC Penney and Aeropostale.
"And it also seems to be kind of that younger generation -- Wet Seal, Deb stores, Delia. Lower end teenage buyer and maybe their fashion sense is fickle and they don't adjust with them. They're not going to survive," Hunter said.
She recommends that anyone with a gift card from one of these retailers should use it now. If a store has already closed its doors, customers can file a claim to recover some of the card's value. The deadline for Radio Shack card holders is July 10.