What Happens to a Gift Card if a Store Goes Bankrupt And Closes?

There are 17.7 million people who hold $210.5 million in unredeemed gift cards from Borders, which closed the last of their stores in 2011. A judge recently ruled that Borders owes nothing to those people, effectively making those gift cards worthless. Which reminds me of this question: Is giving someone a bad gift better than giving someone a gift card? It’s the thought that counts, right?

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5 Comments / Post A Comment

Dancercise (#94)

I would MUCH rather get a gift card than a bad gift, as long as the gifter knows me well enough to get me gift cards that he or she knows I’ll use.
Banana Republic gift card? Free clothes!
Barnes and Noble gift card? Free books and games!
Cold Stone gift card? Free ice cream!
Best Buy gift card? …Um, I guess I’ll go buy a spare phone charger in case mine breaks? Do they even sell phone chargers at Best Buy? But thanks for thinking of me…

sunflowernut (#1,638)

@Dancercise Yeah, gift cards are great! What everyone with Borders gift cards should have done (myself included) is go use the gift cards when we heard they were closing. At the very least, I’d rather have a useless gift card than a bad gift I feel obligated to hang on to for a year or so that takes up space

@fo (#839)

More complete report contemporaneous with original court ruling here:

http://blogs.wsj.com/bankruptcy/2012/08/15/judge-rules-against-borders-gift-card-holders/

sesomai (#3,874)

I think it can depend on the situation. For example, housewarming gift cards are fantastic. Home Depot, Lowes, etc. will be used up quickly. Wedding gift cards for people who have been living together for years can also come in handy since they likely already have many of the standard wedding gifts.

eremyy@twitter (#4,008)

read more in bbom

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