It is estimated that consumers will lose about $100 million this year on gift cards due to bankruptcies. If you are still holding on to gift cards from last Christmas or birthday, now is the time to use them or risk losing them.

Below is an updated list of recent major retailer bankruptcies and their impact on gift card holders:

Tweeter - Tweeter, the electronics store chain filed for bankruptcy on Nov. 5, 2008. The company was granted permission by the U.S. Bankruptcy Court on November 10th to continue the redemption of gift cards through Saturday, Nov. 15 (yes, only 5 days to redeem gift cards). If you were unable to redeem your gift card by that date, the only option left is to file a claim with the Bankruptcy Court for the unused portion of your gift card. However, you could be waiting a long time for this and chances are, you may get pennies on the dollar, if at all.

Circuit City - Circuit City filed for bankruptcy reorganization, meaning that they plan to restructure the business and come out of bankruptcy a more efficient company. They are still accepting gift cards during the bankruptcy and are still issuing new gift cards. If you haven’t done so already, use your Circuit City gift card soon. I will also advise against buying a new Circuit City gift card at this time.

Linens ‘n Things - Linens and Things initially filed for bankruptcy reorganization in May 2008 but things did not work out as planned so the company decided on October 15th to shut its doors. They are still accepting gift cards during the liquidation so this is your last opportunity to use your Linens and Things gift card or say goodbye to it forever.

The Sharper Image, Bennigan’s and Steak & Ale Restaurants, Value City Department Store, Mervyn’s Department Store, Steve & Barry’s, Boscov’s Department Store have all declared bankruptcy this year. For more on these companies, check out the Bankruptcy & Gift Cards page.

The Home Depot is offering a free Prepaid MasterCard valued up to $600 with the purchase of 2 or more select Maytag appliances. Buy 2 qualifying products and receive a $50 MasterCard; buy 3 qualifying products and receive a $100 MasterCard; buy 4 qualifying products and receive a $200 MasterCard and so on. Click here for details. Offer valid 10/9/08-11/30/08.

Circuit City has filed for bankruptcy and the competition is determined to steal customers from Circuit.  hhgregg is now accepting Circuit City gift cards. This is how it works: From November 14th-18th, Circuit City gift card holders can use their gift cards for purchases at hhgregg of up to 20% of the total purchase price. This means that you get a 20% off any purchase when you surrender your Circuit City gift card to hhgregg. Click here for more details.

However, while I sincerely hope they emerge a better company, this is not a time to hope. If you have a Circuit City gift card, NOW is the time to use it.

My sense is that the company will continue to honor gift cards even during bankruptcy since they will not risk angering the very customers they badly need during this difficult time, including gift card holders. However, as seen with Linens ‘n Things, bankruptcy reorganizations don’t always go as planned, and may lead to eventual liquidation. Circuit City may survive but in today’s economy, you never know. 

Wal-Mart: Buy PS3, Get $100 Gift Card
Wal-Mart is offering a free $100 gift card when you buy a 80GB PlayStation 3, which sells for $399. You can also get a $30 Gift Card when you buy a PlayStation 2, which sells for $130. You can’t beat this deal. Offer valid for Saturday, November 8th only.

L.L. Bean– $10 gift card with order of $50 or more
L.L. Bean is offering a free $10 gift card with a purchase of $50 made in-store, over the phone or online. Offer valid through December 24th, 2008.

Here are the top gift card deals for the week:

Costco Selling Starbucks Gift Cards at 20% off
Costco is now selling Starbucks gift cards at 20 percent off. They come in a package of five, $20 gift cards for $79.99, a savings of $20.

Radioshack - Trade Your Old, Broken Gadgets for a Gift Card
Don’t get rid of your old, broken gadgets yet. Radio Shack has started an online Trade-In Program that allows consumers to exchange their old gadgets for gift cards. All you need to do is visit their website, search their database for your gadget and offer the best quality assessment that you can, and they provide a mail-in sticker that you print. Your gift card is sent within 10-14 days after the gadget is receieved.

I am putting Circuit City in this category because the company has yet to find an answer to Best Buy. In May, I posted this story about problems at Circuit City and the offer from Blockbuster to merge the two companies. Since then, the company has missed earnings and has been laying staff off. But the problem seems to be the business model, which has yet to be fixed to better compete with rival Best Buy.

The current economic crisis has made things worse and according to this story from Reuters, the company is planning to close 150 stores and lay off thousands of workers. Whether this will stop the bleeding is anybody’s guess. So, if you currently hold a gift card from Circuit City, I strongly urge you to use it NOW! There is a real possibility the company may have to file for bankruptcy and you don’t want to be left with worthless gift cards.

Here is an idea to save you some money. You can buy gift cards at discounts of up to 20% off at GiftCardRescue.com. GiftCardRescue.com is our sister site and the publisher of this blog. In addition to offering discounted gift cards, the site also allows you to sell your unwanted gift cards for cash. Giftcardrescue.com will pay 70% of card value for your unwanted gift cards.

In addition, you can also exchange your gift card for another card of your choice, guaranteed. Choose from popular stores like Abercrombie & Fitch, Babies R Us, Best Buy, Brooks Brothers, Home Depot, Nordstrom, Wal-Mart for your exchange. Click here to go to the site.

The company has therefore abandoned its reorganization plan and has auctioned its assets to the highest bidder. As a result, beginning Friday, October 17th, all remaining 371 Linens ‘n Things stores in the United States will begin their “Going out of Business Sales” where their entire inventory will be sold at a discount.

What does this mean for gift card holders? If you currently hold a Linens ‘n Things gift card, you may be out of luck. As I mentioned back in May, the gift cards were redeemable while the company was undergoing reorganization. But now that they have decided to liquidate the business, your card may be worthless. However, I encourage you to try and see if they will accept your card during the liquidation sale (please be kind and post your findings in the comments section to help others in a similar predicament :):)

Which brings me to the question of why the company did not alert gift card holders to come in and redeem their cards when they knew they were going under? I will explore this issue in another article since the same thing happened with The Sharper Image when they abandoned their reorganization plan and decided to liquidate the entire business, leaving gift card holders with worthless gift cards.

GiftCardRescue.com, our sister site provides attractive options to unlock the value in your gift card. Giftcardrescue.com allows you to exchange your gift card for a brand new card of your choice. Here is how it works: Giftcardrescue.com will buy your unwanted card for 70% of card value. You can then use the proceeds from the sale to buy a brand new gift card of your choice. You can choose from popular stores like Abercrombie & Fitch, Ann Taylor, Babies R Us, Banana Republic, Best Buy, Brooks Brothers, Hollister, Home Depot, Nordstrom, Target, Wal-Mart to name a few.

Why exchange your card with Giftcardrescue.com? Apart from offering you a better rate for your exchange, you do not have to waste time looking for someone to exchange your gift card with. You can sell your gift card directly to Giftcardrescue.com and get the gift card you really want faster. Also, Giftcardrescue.com guarantees all transactions. Click here to go to the site.

Fashion
Nordstrom
Macy’s
Pottery Barn
Pottery Barn Kids
Old Navy
Bath & Body Works
Land’s End
Kohl’s
The Body Shop
Banana Republic
Sears
Jo-Ann Fabrics
Kmart
Gap/Baby Gap
Motherhood Maternity
Mimi Maternity
A Pea in the Pod
Destination Maternity

Dining Out
Cold Stone Creamery
McDonalds
Outback Steakhouse
Carrabba’s
Bonefish Grill
Chili’s/On the Border/Maggianos
Damon’s
Uno Chicago Grill
Starbucks
Red Lobster
Pizza Hut
Baja Fresh
Cracker Barrel
Smokey Bones
Olive Garden
Cheesecake Factory
California Pizza Kitchen

Entertainment
AMC Theatres
Regal Entertainment
Fye

Electronics & Toys
Best Buy
Toys R Us
ITunes
OfficeMax
Staples

Books, Movies & Music
Barnes & Noble
Blockbuster
ITunes

Sports
NASCAR
NHL
MLB.com
NBA
NFL
Nike
ESPN Shop
Fantasy Football

Tickets
Six Flags
Universal Orlando Resort
Ticketmaster

Sporting Goods
Bass Pro Shops
REI
Cabela’s
Footlocker
Lady Footlocker
Kids Footlocker
Champs
Footaction
Sports Authority

Recreation & Travel
Marriott
American Airlines
Jet Blue
Southwest
Shell
BedandBreakfast.com

Prepaid/Bank Issued
American Express
Giftcardmall Visa
All Access Visa
A gift for you MasterCard
American Express Card for Teens

*Please note that gift card selection may vary by store. Call your local Safeway to verify availability.