Conventional wisdom dictates that retailers on the brink use peak holiday shopping periods to raise much needed cash before opting for bankruptcy. But in these days of stalled credit a few firms are rumored to be toying with the bankruptcy option before Christmas.

Credit ratings have dropped and anxious analysts are especially watching the following retailers for signs of bankruptcy activity: Circuit City, Gottschalks, Eddie Bauer, Claires, Guitar Center, Lohemann’s, and Oriental Trading Company.

What does this mean for shoppers?

It can mean two things: get ready for deals — and don’t buy their gift cards. This Christmas is quickly turning into a retailer death watch with the recent passing of Mervyn’s and Linens ‘n Things.