By now, you probably already know that many gift cards charge a fee against the unused balance if the card is not used by a year after purchase. But the recent bankrupting of Sharper Image shows a new peril with giving the gift of card.
Specifically, what happens to the card holder if the company files chapter 11?
According to the consumer reports blog :
“Some three weeks after the specialty retailer filed Chapter 11 bankruptcy on Feb. 19, owners of gift cards and merchandise certificates are facing confusing options about what to do with those obligations, which the retailer initially said it wouldn’t honor, at least for the time being.
On March 7, the U.S. Bankruptcy Court for the District of Delaware granted the retailer’s request to resume honoring its cards and certificates-but only for customers who make a purchase of at least twice the value of the card or certificate. So to use up a $50 gift card, a customer would have to buy at least $100 in merchandise.”
In short, a big legal mess has ensued. The cards are either no longer worth the plastic of which they’re made, or they are at least worth considerably less than face value.
This leaves card holders with 3 options:
- Bust out the scissors and practice a little gift card origami.
- Run, don’t walk, to your nearest branch of the store and buy what you can with what’s left of the card.
- Try to sell it at http://plasticjungle.com/, where people can buy, sell or trade gift cards.
Technorati Tags: sharper image, bankruptcy
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