WITH Christmas just weeks away Bermudians have started their holiday shopping in earnest, buying gifts for loved ones here on the island, on the Internet and overseas, often on the US eastern seaboard.

However, with the US recession causing shoppers stateside to watch their wallets, many large department stores and independent retailers alike are being forced to close their doors.

A comprehensive list of American store closures for this holiday season is currently making its way around Bermuda via a massive chain e-mail, warning locals to be careful when buying store cards or gift certificates from US-based shops as presents.

With retailers declaring bankruptcy on a weekly basis, the e-mail warns, your gift may be rendered useless before your friend or family member can enjoy it.

While some news outlets in the states have declared similar warning e-mails 'hoaxes', shoppers' advocacy group the Consumer Federation of America agrees that it might be best this season to avoid store cards or gift certificates altogether. Some US shoppers have already learned this lesson the hard way as store closures earlier this year left millions of shoppers out of pocket.

When upmarket gadget shop the Sharper Image filed for bankruptcy months ago, $20 million in gift cards were rendered useless. In August, when furniture chain Bombay closed down, the retailer won approval from a US bankruptcy judge to pay off gift card holders 25 cents to the dollar.

Other stores closing their doors – and which may not honour gift cards, certificates, or store credits – include homewares chains Wickes Furniture and Levitz, beach shop Pacific Sunwear, and DVD outlet Movie Gallery.

Many stores popular with Bermudian shoppers are closing but still honouring gift cards in remaining shops and online, including electronics chain Circuit City.

The Consumer Federation of America suggests that, if you must buy a gift card or certificate, choose one that is tied to a credit card company or one that be used at multiple retailers.