A friend went to purchase a gift card at Fashion Bug and was told it would only be good til the end of the year because they were going out of business. Has anyone else heard anything?

I just Googled it, and yes, they have been bought out by some retail group. Most of their stores will be closed by early 2013. Some will be converted to Dress Barn, Justice, or Maurices stores. There are several articles about it online.