GiftCardBlogger.com is featured in this story that appeared in yesterday’s edition of the St. Cloud Times in Minnesota. The article talks about what consumers can do when they get stuck with gift cards after a local business goes bankrupt. Check it out.
When it comes to bankruptcy and gift cards, customers of small businesses suffer the most when a local business goes bankrupt. Often times, customers find out about the bankruptcy months later, when it is too late to take action. Even well informed customers find it hard to get their money back once a local business goes bankrupt.
This story from Missouri shows how customers can petition their state’s attorney general’s office when they find themselves in a similar situation. According to the report, a local spa (Spa 151) went out of business after operating for a little more than two years. More than 300 consumers filed complaints with the state’s attorney general’s office alleging that they held gift cards or gift certificates that could not be redeemed. Read the rest of this entry »
According to a story on Bloomberg News this morning, struggling retailer Circuit City has decided to put itself up for sale. The company is opening its books to Blockbuster and other investors interested in an acquisition. If you recall, i posted a story last week about rumors of the company being on the verge of bankruptcy, which turn out to be untrue.
What does this mean for gift card holders? This is a bit of good news since any effort to keep the company alive means gifts cards will continue to be redeemed. However, as I have mentioned before, if you have a Circuit City gift card, now is the time to use it. Also, I do not recommend buying a Circuit City gift card until the company’s future is clear.
Here is some good news for Linens n’ Things gift card holders. The company will continue to honor gift cards despite the recent bankruptcy filing.
According to a story on Promo Magazine’s website, Linens n’ Things has received approval from the bankruptcy court to allow customers to continue redemption of gift cards and coupons. As you may recall, i posted a story a few days ago about the company filing for Chapter 11 bankruptcy protection.
This is also good news for Linens n’ Things since I believe it will enable the company retain some of its current customers, prevent the competition from exploiting its misfortune (as Brookstone tried to do with The Sharper Image recently), project some sense of business as usual, and also attract new customers since their gift cards are popular.
During the last two weeks, I have talked a lot about why consumers should redeem their gift cards soon due to the recession and the possibility of more retailers going under. One area i have not mentioned is what happens when local businesses that issue gift cards change hands.
This video from NBC affiliate station WWLP in Springfield, MA talks about how customers of a local beauty salon got stuck with gift cards when the salon ownership changed hands. See the video below.
Yes, it’s true - Linens ‘n Things filed for Chapter 11 bankruptcy protection yesterday. I am sure the question on the minds of gift card holders is whether the company will continue to honor gift cards.
According to this story from Marketwatch, the company is trying to get permission from the bankruptcy court to continue to honor gift cards. The company plans to close about 120 under performing stores but it plans to operate the remaining stores without interruption.
I placed a call today Read the rest of this entry »
Is Circuit City going out of business? Over the last week or so, there have been lots of questions regarding gift card redemption from Circuit City. The questions are based on rumors of the company being on the verge of bankruptcy.
Even though the company was on a recent list of retailers at risk of going under during the recession, i do not believe the company is going to file for bankruptcy soon unless the current offer from Blockbuster to buy Circuit City falls through. If the deal falls through, Circuit City will be under a lot of pressure to do something dramatic to turn itself around. In the absence of a plan, and if the company continues to burn cash, they will have no choice but to file for bankruptcy protection.
As I have recommended before, if you currently hold a Circuit City gift card, now is the time to use it or risk losing it should the company go under. I would also not recommend buying a Circuit City gift card until the dust clears.
Readers, what are your thoughts about Circuit City and rumors about the company? Post your comments in the comments section below.
According to this story, Linens ‘n Things may be going under soon. There is speculation that the company may file for bankruptcy if it does not find a buyer soon. If you currently have a Linens ‘n Things gift card, now is the time to use it or lose it. Actually, if you have a gift card you’ve been holding on to for a while, you might want to use it soon.
Considering that we are already in a recession (i don’t know why the government won’t just come out and admit what majority of consumers already know and feel) and don’t know how long it will last, many struggling retailers may have no option but to file for bankruptcy protection.
When a company files for Chapter 11 bankruptcy, federal law allows the company to stop honoring gift cards. However, the company may petition the bankruptcy court to continue the redemption of gift cards. My advise is that when buying a gift card, keep your eyes and ears open regarding the company you are buying from. Avoid buying gift cards from companies that are struggling as you may loose your gift card should the company go under.
To show you how serious things can get, AOL recently asked its users to predict which national retailer may be next to go under. While this is just user opinion, it is not hard to spot trouble with a retailer. When you visit the store and you are always the only one shopping, you know something is wrong. Below are the companies that made the list from the AOL survey: Read the rest of this entry »
According to this story on Bloomberg, Bookseller Borders is in trouble and may be on its way to bankruptcy. If you hold a Borders gift card, you may want to redeem it now before you become a victim to what happened recently to gift card holders of The Sharper Image or Bombay Company after both declared bankruptcy and suspended redemption of all gift cards.
In what may be an acknowledgment of customer anger towards the company’s decision to suspend the redemption of gift cards after it filed for bankruptcy last month, and attempts by rivals to woo its customers, The Sharper Image announced yesterday that it will resume redemption of all Gift Cards for their full value after Bankruptcy Court approval.
However, there is a caveat: Gift Cards will be honored for their full value with two conditions – (1) they must be redeemed in full in one transaction; and (2) customers must purchase an item that costs double the value of the gift certificate or merchandise certificate.
For customers holding The Sharper Image gift card, this is a mixed baggage. While the company is providing some relief, they are clearly restricted on when and how to use their gift cards. To ask someone with say a $100 gift card to spend another $100 before they can redeem the card is quite excessive. I don’t think this offer by The Sharper Image makes the situation any better. If the goal was to woo back its customers, this offer may even turn them further away.
