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Linens 'n Things Bankruptcy 2008-04-14 04:07:22

Linens 'n Things to Go Bankrupt, Use Your Gift Cards

According to The New York Times, Linens 'n Things is expected to file for bankruptcy protection this week and it could turn into a Chapter 11 bankruptcy due to the amount of debt involved. Chapter 11 entails the reorganization of a company's affairs and assets and is the most complicated type of bankruptcy.

Some of you received Sharper Image gift cards for the holidays and were unable to use them when the company filed Chapter 11 bankruptcy in February. While this practice is surely infuriating they're technically not doing anything wrong, as federal law says a company doesn't have to honor gift cards after they've filed for this type of bankruptcy. Linens 'n Things would likely follow suit in terms of gift cards, so you may want to use them while you know they're still good.

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