Retail exchange traded funds (ETFs) could be hurting for the holidays, and gift cards might be the victim.
As more retailers go bankrupt, many consumers could be left holding the bag in the form of unspent gift cards.
Jerry Hirsche for The LA Times reports that out on Main Street, some are realizing that a gift card from a troubled retailer is like a bank account without FDIC insurance. Last season, shoppers spent an average of $26.3 billion on gift cards from retailers, up from $24.8 billion in 2006 and $18.5 billion in 2005.
Big retailers such as Bombay Co. and Sharper Image filed for bankruptcy protection, leaving gift card holders with millions of dollars of what the Bankruptcy Court considers unsecured debt. Both chains have since closed.