The retailer said in a statement that it will take the cards only if the full amount is used in a single transaction and if the customer is purchasing items that are twice as much as the card's value.
The program is voluntary, and the retailer said that they may be able to resume normal gift card redemption in the future.
"While not a complete solution, it does provide immediate satisfaction to customers on a voluntary basis," said Robert Conway, company chief executive.
As we previously reported, when a retailer enters Chapter 11 bankruptcy gift card holders are considered unsecured creditors and are fairly low on the pecking order when it comes to getting their money.
In other Sharper Image news, the retailer is asking the courts for permission to hire an outside liquidator to conduct the closing of half of their retail stores.
"A liquidator will ensure "the most feasible, economical and efficient means of achieving the disposition of the merchandise" at its stores, Sharper Image said.
Sharper Image to redeem gift cards [BusinessWeek] (Thanks, Robin B!)
Sharper Image Asks to Hire Liquidator [Houston Chronicle]
DAMN!
]]>The bankruptcy court must authorize such transactions.
Don't like these terms, complain to the court.
]]>But for those of you who are incredulous how this can happen, you must realize that buying a gift card is nothing more than lending the company money. And you're not even asking for any security when you do it.
Once you're a lender, especially an unsecured one, bankruptcy laws put you into a specific place in line - behind most, in front of some - in the liquidation party.
If you are uncomfortable with lending other people (or big corporations) money, or don't understand bankruptcy laws, you simply should not buy gift cards.
]]>Step One: Realizing a company is doomed, execs will secure just enough financing to get through the Christmas selling season. Terms aren't important; This is "no tomorrow" credit...
Step Two : Promote the shit out of the gift cards around the holiday sales. Load up the incentives (free trinket w/gift card purchase etc...)
Step Three (and the most important step of all): Hand out retention and/or "performance" awards to upper management .
Step Four: Go chapter 11 on January 2,3,4 while the holiday glow is still flickering.
Congratulations ! You have just turned trusting customers into unsecured creditors...
]]>@Buran: Look up "Bankruptcy" laws.
]]>@xanax25mg: I think part of the issue is that they would still have to pay employee salaries and operating costs for each of the stores if they tried to sell everything themselves, thus reducing the amount of money left for creditors.
]]>Here is a funny Sharper Image story, about one in Paramus NJ.
This was a new store opening in a mall that already had a Sharper Image (which was much smaller). The manager used to work as an assistant manager in (I believe) the Times Square store. So he was supposed to be some real professinal, all excited to show what he could do with his own store.
Well shortly after opening, one slow evening we had a group of guys spread out around the store speaking with every sales person. We of course didn't realize they were all together.
After they left the manager realized that all the digital camcorders, and other high end items, in our clear plastic display cabinets had been stolen. Apparently the key used to open those display cabinets was UNIVERSAL for all stores!
Normally this wouldn't matter due to the black spiral security cords attached to every item...except the manager forgot to put them on. So in a panic he took a knife and cut the cables in half (which took quite awhile) and stuck the cut bases into the display case...and of course told us all to go along with his story of people coming in and cutting everything while we didn't notice. >_<
I left within a few months after that, I don't think he was there much longer either.
]]>Any of you with gift cards from Discover Cashback can call and get it refunded.
My only question now is do they actually deactivate the cards when they refund them?
]]>all I know is I bought this thing back in December and I'm STILL playing the same Elderscrolls: Oblivion character.
]]>With saavy business practices like these, I'm suprised they're bankrupt
]]>I like the comment from last week's post who said
"Take something of equal or close value, and walk out of the store leaving the gift card in its place"
]]>@Buran:
@yesteryear:
Yup, it's a breach of contract, but, since the company's in bankruptcy, there are a lot of other people with breach of contract claims, and many of those rank higher (i.e. secured creditors) than gift card holders.
]]>They got you by the balls as soon as you've exchanged "real" money for this monopoly money.
]]>I bought a fancy massage chair from them. I bet I am screwed on any service, should I need it...
]]>@BStu: Probably the store is still operating so that it may sell off it's inventory so that it may pay their creditors (including gift card holders) a pittiance of what they owe...
]]>Ugh. I used to work for them. Sold many Ionic air purifiers...what a weird store.
Their policy for their radio controlled planes was that, since the range was limited, if a customer came back with just the remote and said the plane just flew away we'd give them a new plane.
]]>Ok, gonna be a grammar nazi here. "Shaper" Image? Is this like an excercise store? Har har har. I kill me.
]]>