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The Fate of Unused Gift Cards After Business Closures

March 29, 2025 - 05:53

The Fate of Unused Gift Cards After Business Closures

Recent closures of several retailers and a San Diego boxing gym have left many consumers wondering about the fate of their unused gift cards. When a business shuts its doors, customers often face uncertainty regarding the value of their gift cards. In many cases, these cards may become worthless, leaving customers feeling frustrated and disappointed.

Typically, when a business closes, it may file for bankruptcy, which complicates the situation further. In such cases, unused gift cards may be considered unsecured debt, meaning that customers are unlikely to receive any refunds. Some businesses may offer limited redemption opportunities before officially closing, but this is not guaranteed.

Consumers are encouraged to check the terms and conditions of their gift cards, as well as any announcements made by the company. In some instances, state laws may provide protections for consumers, allowing them to recover some value from their gift cards during liquidation processes. However, the outcome often varies significantly from case to case.


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