Gift cards are often a great idea for hard-to-shop-for friends and relatives, particularly during the holiday frenzy.

But after some Treasure Valley restaurants and national retail stores closed their doors recently, people have expressed frustration in trying to figure out what to do with their unused cards and may be thinking twice about giving them as gifts this year.

Franco Latino in Eagle closed in October, and 8th Street Wine Co. in Boise closed in August, leaving patrons with worthless gift cards.

"I am holding on to a $50 gift certificate for Franco Latino. I haven't even tried calling them. Figured I would not get ahold of anyone," said Carly J. Latimore.

Before the spate of closures, gift cards had become a booming way to do business.

Nationwide, shoppers spent an estimated $26.3 billion on gift cards at retailers last Christmas season, compared with $24.8 billion in 2006 and $18.5 billion in 2005, according to the National Retail Federation.

Already some big national retailers, including Sharper Image and Bombay Co., have 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.

Circuit City, which closed stores across the country and started bankruptcy proceedings this month, said it would still accept gift cards at its remaining stores - including the one in Boise. Some consumer groups have gone so far as to warn people against shopping at the threatened stores at all.

"Consumers need to think twice about buying anything at Circuit City, given that it may or may not be around in coming months," said Greg Daugherty, executive editor at Consumer Reports. "We wish them well, but, as a consumer, it's probably not worth taking the risk."

Most electronic products sold at Circuit City and other stores are backed by manufacturers' warranties. Circuit City said it would continue to accept returns as before and to honor its add-on warranties, which were secured by third-party financial institutions.

Consumers Union said Sharper Image left an estimated $20 million on unused gift cards and maybe as much as $40 million when merchandise certificates and related promotional cards were included.

At first Sharper Image said it would not honor the credits. Later, it successfully petitioned the Bankruptcy Court to allow it to accept gift cards if consumers spent twice the value of the card on a single transaction.

"That wasn't such a good deal, and who knows if anybody used their cards that way," said Anthony Giorgianni, associate editor of Consumer Reports, which is published by Consumers Union.

In August, home-furnishing retailer Bombay Co., which closed 388 stores, including the one at Boise Towne Square, won approval from a U.S. bankruptcy judge to pay off gift card holders 25 cents on the dollar.

Meanwhile, some Treasure Valley gift card holders have tried contacting company owners, but have yet to recieve a reply. And previously listed phone numbers, e-mail addresses and Web sites often lead nowhere.

"My husband received an 8th Street Wine Co. gift card for his birthday, purchased two days before the doors closed," said Heather Price. "An e-mail to them has been unanswered."

Owners of both restaurants have left town, and Statesman attempts to reach them since have been unsuccessful.

Alan Dettman, security and event staffing manager at the Knitting Factory Concert House in Boise, thought gift cards to 8th Street Wine Co. would make great gifts, until the restaurant closed in August.

"I am left with a $50 gift card from the 8th Street Wine Co. and nowhere to use it. This is frustrating, and I gave out $150 worth of them as presents last year," Dettman said.

Dettman said that when he bought the gift cards, he wasn't worried about his purchase.

"I work across the street from them and saw no signs of trouble or slowing in business - I thought," Dettman said. "I am leery of gift cards and not only the businesses going under and nowhere to use them, but the service fees many businesses charge. I had one that I didn't use for four months, and in the third month, they charged me fees retroactive to the start date. It used up half of my balance on the card."

Some businesses have offered reimbursements for unused gift cards, such as Zutto Japanese Restaurant, which closed Oct. 14 after 11 years in Boise, citing the struggling economy as a chief cause. The restaurant has said if patrons have a gift certificate, they should call 850-8208, but Statesman calls to that number haven't been returned.

Around the country, gift card holders could lose more than $75 million just from store and restaurant closings in 2008, said Brian Riley, senior analyst at Tower Group, a consulting company.

"The only way that number will change is up," Riley said.

A couple of local options let gift card buyers hedge their bets. The Boise Towne Square mall offers cards good at stores there - and it doesn't go through the mall's parent company, which is facing its own financial trouble.

The Downtown Boise Association gift card can be used for shopping, dining, entertainment and even parking garages.

"The really neat thing about our card is that it can be used at over 250 locations. So we have actually seen an increase in sales," said Karen Sander, executive director of the DBA. "The variety is the selling point on it. It's a great advantage."

"This is the time of year when we sell the most. And we typically see a 14 to 15 percent increase in sales year over year," Sander said. "The variety keeps expanding, and if you're looking for a gift for that somebody who is hard to buy for, it's very versatile."

Jerry Hirsch of the Los Angeles Times contributed to this report.

Brenda Gutierrez: 377-6440