After bankruptcies, gift cards can be worthless (Sharper Image "suspends acceptance")

[Amerigo Vespucci]

After bankruptcies, gift cards can be worthless

With predicted filings, $75 million is at risk industry analysts, observers say

http://www.msnbc.msn.com/id/23454533/

NEW YORK - You know that Sharper Image gift card you got for Christmas? Right now, it's worthless. And other gift cards in your wallet could lose their value, too.

As more retailers file for bankruptcy or go out of business, more than $75 million in gift cards are at risk of becoming worthless pieces of plastic this year.

"If I knew this was going to happen, I would have used them right away," said Jon Tapper, a public relations executive from Boston who received two Sharper Image cards as business gifts just a few weeks ago. Their total face value is $50. "I love gift cards, but now this makes me think twice."

The Sharper Image announced late last month that it was suspending the acceptance of gift cards, at least temporarily. It urged shoppers to check the company Web site later this month for an update. That is typical of businesses that reorganize under Chapter 11 bankruptcy, which treats gift cards as a loan to the company, not as cash.

[rpannier]

1. Ah... Corporate America sticks another knife into consumers and our government

will do nothing about it.

I wonder what would happen if I "Temporarily stopped accepting bills from Company-X and would not pay."

How quickly would the wolves be at my door?

[marmar]

2. A loan to the company?

What a load of bollocks!!! :mad:

[Plague]

3. All the more reason...

...just to give money.