Mervyn’s department store has filed for chapter 11 bankruptcy protection. Mervyn’s stores will remain open and business will continue as the company goes through the bankruptcy process. According to this story from MarketWatch.com, the company has received approval from the bankruptcy court to continue to honor outstanding gift cards and loyalty programs.

Mervyn’s now joins a growing list of retailers that have filed for bankruptcy this year, including well known companies like Steve & Barry’s, Linens ‘n Things and Sharper Image. If you currently have a Mervyn’s gift card, NOW is the time to use it or lose it.

I expect more retailers to file for bankruptcy in the coming months considering the worsening economic situation. If you have received a gift card you don’t want or can’t use, you can sell it for cash at our sister website GiftCardRescue.com or exchange it for another card of your choice. You can choose from a list of over 30 popular gift cards including merchants like Home Depot, Target, Abercrombie & Fitch, Macy’s, New York & Company and Best Buy.

Stay tuned for updates on Mervyn’s bankruptcy situation and any changes to their gift card redemption policy.