Will your gift cards become worthless?

Larry Collins
Published: November 19, 2008

Circuit City is teetering on the edge and the retail market is struggling. So, what happens to the gift cards you buy if a company closes?

Experts say those gift cards are a lot like frequent flyer miles for an old airline that closed; they are virtually useless.
   
Another retailer wouldn’t honor those cards because they would lose money. It is like basically giving away merchandise and getting no money because you paid your money to another company.
 
If another company buys out the store that issued your gift card, you should be in the clear.

There are a few retailers who may be safer than others. Think about buying from the tried and true giants like Wal-mart. And simply giving cash this Christmas may be a good idea.