SUMMARY: Forwarded email purports to list current and future retail store closings by major U.S. companies due to the economic downturn, and advises consumers to redeem gift cards and gift certificates sooner rather than later.
Description: Email flier
Circulating since: Nov. 2008
Status: Partly true / Misleading
Email example contributed by Bryn C., Nov. 15, 2008:
Subject: STORES TO CLOSE DUE TO RECESSIONIt seems there are lots of stores that are closing due to the "recession" and the fact that people are not shopping. If you have any "gift cards" from these stores, make sure you use them, or you will lose them !
Watch those store money cards and gift cards.. and credit slips! Stores that informed the Security Exchange of closing plans between October 2008 and January 2009.
PLEASE PASS THIS ON TO ALL YOUR FAMILY AND FRIENDS.
Circuit City stores... most recent (? how many)
Ann Taylor - 117 stores nationwide are to be shuttered
Lane Bryant,, Fashion Bug ,and Catherine's to close 150 store nationwide
Eddie Bauer to close stores 27 stores and more after January
Cache will close all stores
Talbots closing down all stores
J. Jill closing all stores
GAP closing 85 stores
Footlocker closing 140 stores more to close after January
Wickes Furniture closing down
Levitz closing down remaining stores
Bombay closing remaining stores
Zales closing down 82 stores and 105 after January.
Whitehall Jewelers closing all stores
Piercing Pagoda closing all stores
Disney closing 98 stores and will close more after January.
Home Depot closing 15 stores 1 in NJ (New Brunswick)
Macys to close 9 stores after January
Linens and Things closing all stores
Movie Galley Closing all stores
Pacific Sunware closing stores
Pep Boys Closing 33 stores
Sprint/ Nextel closing 133 stores
JC Penney closing a number of stores after January
Ethan Allen closing down 12 stores.
Wilson Leather closing down all stores
Sharper Image closing down all stores
K B Toys closing 356 stores
Lowes to close down some stores
Dillard's to close some stores.
Comments: Don't be misled by this alert. While it's true that many U.S. companies are feeling the effects of the economic downturn and some will no doubt close locations and/or file for bankruptcy in the coming months, most of the store closures listed above had either already taken place or were planned well before the 2008 financial crisis occurred.
Which means that in all but a few cases, fears that gift cards issued by these companies may suddenly become worthless are unwarranted or premature.
That having been said, financial experts do warn that it's risky in general to put off redeeming gift cards in such volatile economic times.
With the caveat that the exact facts and figures seem to vary depending upon the source of information (and it's all subject to change in any case), here's a corrected version of the list above:
Circuit City - Filed for bankruptcy on November 10, 2008 and announced the closure of 155 stores. (source)Ann Taylor - Earlier this year announced it would close 117 stores. (source)
Lane Bryant, Fashion Bug, and Catherine's - Nine months ago parent company Charming Shoppes Inc. announced the closing of 150 stores. (source)
Eddie Bauer - Closed 31 retail and outlet stores (in line with target number set early in the year) and opened 10 during the first three quarters of 2008. (source)
Cache - Announced early in the year it would close 21 stores and open 16 in 2008. (source)
Talbots - Closed approximately 100 stores in 2008 but is still in business and has no more closings planned. (source)
J. Jill - Owned by Talbots Inc., which wants to sell the chain but has not announced the closure of any J. Jill stores. (source)
Gap Inc. - In mid-2008 revised its projected number of store closings (including Gap, Banana Republic, and Old Navy locations) upward from 85 to approximately 115 stores for the year. (source)
Foot Locker - Projected closing 140 stores in 2008. As of Nov. 20, had closed 129 stores and opened 58 new ones. (source)
(List continues on next page)
