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By Ben Popken

Ailing children's clothing retailer Gymboree is reportedly preparing for bankruptcy, Bloomberg writes, citing unnamed sources with knowledge of the matter.

So if you have any Gymboree purchases you need to return, or any unused gift cards lying around, now might be a good time to use them.

If it's a Chapter 11 bankruptcy, then the company would simply be reorganizing and continuing to do business. But if it's a Chapter 7, then it will close and sell off assets. Typically when a company goes bankrupt any new owner gains control of all the assets but not the liabilities. That includes gift cards.

Bankruptcy court will decide if the business has to honor gift certificates and for how long, but why wait to scratch the to-do off your errand list?

Related: J.C. Penney to Close 140 Stores

The move comes as other retailers industry-wide have been struggling with the decline in mall attendance and the surge in online shopping.