What Happens to a Gift Card if a Store Goes Bankrupt And Closes?

There are 17.7 million people who hold $210.5 million in unredeemed gift cards from Borders, which closed the last of their stores in 2011. A judge recently rule that Borders owes nothing to those people, effectively making those gift cards worthless. Which reminds me of this question: Is giving someone a bad gift better than giving someone a gift card? It’s the thought that counts.