They do this every year in my department (for about the last 10 years or so) -- there have been real loser gifts like Preparation-H, used copy of software my company makes; the one everyone remembers most (most bizarre) was a "briefcase" -- made from a pair of black womens briefs, and a couple of wood slats for handles...
I saw a fluff piece on the local news about a store in town that sells kind of oddball stuff, like "white-trash" dolls, etc, I have contemplated visiting it; probably won't though, it's kind of out of they way for me, here's the site:
http://babette.com .