how this is possibly legal? Someone was generous enough to purchase me a gift card to Babystyle for Judah’s arrival. Of course, as most people can relate, a new baby is typically set for quite some time before needing any new clothes. I was holding onto this piece of plastic, and actually considering perusing there soon, until I was informed that they are going out of business. “Good to know,” I said, thinking that the gift card would’ve been useless had there been no store in existence. However, I’ve found out, via their website, that the gift card is still considered useless anyway, even though they still have merchandise that they are selling. HOW IS THIS POSSIBLE??? Somebody went in there and spent money so that I could turn around and choose my merchandise. Babystyle has essentially taken this person’s money, and will not honor that their money (currently on the gift card) has not been exchanged for merchandise. THIEVES!!! I am so mad, and feel so cheated! Where is the fairness in this? I simply do not understand how that can be legal. I’m sure someone knows all of the la-ti-da bancruptcy laws and knows why it is legal, but it still is unjust in my opinion. I’M FUMING!!!
March 17, 2009 at 8:45 pm |
I know exactly how you feel! Sorry…
March 18, 2009 at 6:37 am |
is there some better business something or other website that you can report them too.
hmmmmm if they conduct business like this no wonder they are closing.
March 19, 2009 at 2:21 pm |
And people wonder why I’m grumpy?
Here’s the scoop:
http://www.dca.ca.gov/publications/legal_guides/s-11.shtml
Q.6. What happens if the seller of the gift certificate or gift card files bankruptcy?
A. A gift certificate or gift card sold by a seller that seeks bankruptcy protection may have no value. However, the holder of the certificate or card may have a claim against the bankruptcy estate.
Sellers that file “Chapter 11″ (reorganization) bankruptcy intend to stay in business, so they typically will ask the bankruptcy court for permission to honor gift certificates in an effort to maintain good customer relations.
If the bankruptcy court does not allow gift certificates or gift cards to be honored, or if the seller files “Chapter 7″ (liquidation) bankruptcy, holders of gift certificates or gift cards are creditors in the bankruptcy case. They have relatively high priority among unsecured creditors in a Chapter 7 case, and may receive some percentage of the certificate’s or card’s value, but only if the bankruptcy estate has enough assets to pay claims. For information on filing a claim, and other basic information on bankruptcy, see “Consumer Tips on Retail Store Bankruptcies,” under the “Publications” tab at http://www.dca.ca.gov, and then go to the “Consumer Publications” section, for the list of consumer publications.
A recently adopted California law is intended to help gift certificate and gift card holders when the seller declares bankruptcy. It requires a seller in bankruptcy to honor gift certificates issued before the date of the bankruptcy filing.22 No court has ruled on the effectiveness of this law.