Yes, it’s true - Linens ‘n Things filed for Chapter 11 bankruptcy protection yesterday. I am sure the question on the minds of gift card holders is whether the company will continue to honor gift cards.

According to this story from Marketwatch, the company is trying to get permission from the bankruptcy court to continue to honor gift cards. The company plans to close about 120 under performing stores but it plans to operate the remaining stores without interruption.

I placed a call today to a local store here in Maryland and I was told they were still accepting gift cards. I was glad to hear that because my wife has a $100 Linens ‘n Things gift card which went missing after I reported about the possibility of the company going under a week ago. We found the card this morning (how ironic) and we plan to use it today.

As I have said before, if you have a Linens ‘n Things gift card, NOW is the time to use it while you can. Who knows how long the company will be allowed to continue to redeem gift cards? They may also make it harder for you to redeem your gift card just like the Sharper Image did a few months ago after they went bankrupt.

For more on what happens to gift card redemption after a company goes bankrupt, click here.

Readers, do you have a Linens ‘n Things gift card you have not redeemed yet? Have you been able to redeem it? Post your comments in the comments section below.