Got a Linens ’n Things gift card? Use it now.

Bankrupt retailer Linens ’n Things is just days away from auctioning off the company, possibly to a bidder that could close and liquidate the company’s remaining stores. But you wouldn’t know it by looking at the Linens ’n Things Web site, which continues to market the store’s gift cards with values as high as $200.

You might expect that the company, which filed for bankruptcy reorganization in May, would alert gift card buyers of its precarious financial situation so that they could decide whether to take a chance on getting stuck with a worthless or near-worthless card if the company shuts down operations. That's what defunct Sharper Image did earlier this year. Such an alert might even be more warranted now that Linens ’n Things has abandoned its reorganization plan and scheduled an Oct. 14 auction, with the approval Friday of the federal bankruptcy court.

Rich Tauberman, a Linens ’n Things spokesman, says the company as late as Friday remained in discussions with potential bidders that would operate the stores. But he said he believed gift cards would continue to be honored whether a new owner operates the stores or liquidates them.“We have every expectation that gift cards will be honored in our stores with whatever happens,” Tauberman says.

But based on what happened with Sharper Image, we recommend caution. In that case, the chain first stopped accepting its cards, then resumed accepting them under certain circumstances, and then closed its store altogether, stranding gift card holders.

So if you have a Linens ’n Things gift card, we advise you to use it immediately, preferably this weekend. If you’re thinking of buying a Linens ’n Things gift card, think again. —Anthony Giorgianni

Comments

[James]

There has been one offer proposed to from some liquidators that will liquidate the company. this offer is pretty solid and I don't expect it to be beat.

Part of the agreement from the liquidators is to continue to accept gift cards purchased before the first day of the store closing sale.

this information can be found at the bankruptcy website from court documents.

If you have gift cards, go ahead and use them, especially if you buy something that is now on sale and if you have a 20% off coupon. But know that the plan, for now is to accept gift cards.

[yea]

It would be nice if we (employees) knew anything else... we would tell you if these guys ever tell us anything

[Nancy Gullotta]

I think it is a shame, with all the stores that will be closing. Linens and Things chose to close there doors. Thousands of people will be out of a job which will add to are allready burdened economy. They did nothing to reorganize, insted greed entered into there descission. SHAME ON THEM

[Julia]

It's a good idea to use ALL your gift cards very soon. With the economy in the dumps, you never know when a retailer may go bankrupt. This is what I recommended on the Bargain Hunter blog at blogs.dailynews.com/bargain.

[Mary Ellen]

Dont try to get a bargain at Linens n Things yet. Went there today and they will not longer accept their coupons. They are only giving 10% discounts on liquidation. Might as well use your
20% coupons at Bed Bath and Beyond. No deals at Linens n Things.

[Melissa]

They are no longer accepting their gift cards on internet orders. I received an email saying they would honor my 20% registry completion discount on anything left on my registry though.

[Juneau]

I just went over to my local Linens and Things store in San Diego. Housewares are now at 20% off tagged price. Last week it was 10%. Even at 20% there is absolutely no good deals. They have so much inventory and there stuff was overpriced originally. Don't waste your time going over until the kitchen stuff comes down to 50%. It will be worth it then. Let them sit on there inventory. They probably will never get down to 50%. They will take everything and blow it all out to some other supplier or wholesaler.