Despite issuing a press release claiming that they will “continue to conduct business as usual,” The Shaper Image has suspended redemption of all gift certificates after filing for bankruptcy late on Tuesday.
After receiving several complaints that gift certificates were not being honored by the store the Consumerist was able to confirm via email with the Sharper Image’s corporate sales staff that the retailer is no longer selling or accepting the cards.
Reader Javier is stuck with a $279 store credit from a defective Roomba:
I called customer service and they sent me a Merchandise Certificate for $279 dollars. They couldn’t send me a new Roomba because they don’t consider it the same product since its a new version. During the holidays, no store in the Chicago area had the Roomba in stock, so I was left out in the cold again for 2 more months. Now, I finally go to the store and hand them my certificate and I’m told that due to Chapter 11, SI is not accepting Merchandise Certificates or Gift Cards from anyone.
Reader Jonathan’s boss is stuck with a credit card rewards gift card from Mastercard:
The card was a reward gift from Mastercard. My boss used the gift card ($500.00 total) to purchase some speakers. Today he went online to purchase a digital camera with the remainder (over $250.00) and the card would not process. He called Sharper Image customer service see what the problem was and the representative told him they had suspended gift card redemptions due to the bankruptcy.
According to the California Department of Consumer Affairs legal guide on gift certificates, the holders of cards may have a claim against the bankruptcy estate of a retailer that files Chapter 11. If the court has prohibited The Sharper Image from redeeming gift certificates, you are considered a creditor in the case, says the CDCA.
You may be entitled to file a claim, but as an “unsecured creditor” you’re pretty far down in the pecking order and aren’t very likely to get anything.
“Consumers should weigh the potential benefits of a successful or partially successful claim, against the inconvenience and expense of pursuing the claim, Even a successful claim will take time. Bankruptcies in which there are assets can take up to a year or more before creditors are paid. In many cases, there are no assets.
Your prospects for receiving your money are better if the a store chooses to file Chapter 11 bankruptcy [ed. — like Sharper Image.] This means the store intends to reorganize, emerge from bankruptcy and continue doing business. But many retail stores fail to achieve that goal. Most Chapter 11 bankruptcies eventually end up in Chapter 7 bankruptcy, which involves liquidation of all assets and going out of business for good.
If you bought your gift card you may want to try a chargeback with your credit card company, but otherwise it looks like you’ll can just sit tight and wait it out or file a claim with the court.
Consumer Tips on Retail Bankruptcies (PDF) [California Department of Consumer Affairs]
More From Consumerist
-
No, McDonald’s Did Not Buy Burger King Because “The Whopper Flopped”
-
Do We Still Need Fee-Disclosure Placards On ATMs?
-
Is There Anything Special About The iPhone 5?
-
It Is Apparently Rather Easy To Suspend Someone’s Facebook Account Just By Saying They Are Dead
-
October Recall Roundup: High Chairs, Herring, And Metal Shards
@Fili: contact iRobot and explain your situation. maybe you’ll be lucky and find out they are one of the few companies with decent customer service and could possibly do something to help you. it would be worth a shot.
I was there today. They just can’t take the cards while they are in bankruptcy court. Once it’s over in a week or so everything will be business as usual. It’s a legal issue.
i was looking into more ways of getting gift cards protection, or seeing if any store even offered bankruptcy protection, turns out NO ONE does. however, I did find a company that sent out a press release soon after the date, ” Leverage Inc. today announced a new bankruptcy insurance policy that allows customers holding gift cards purchased via its LeverageCard.com destination from Sharper Image and other merchants filing for Chapter 11 bankruptcy protection to transfer remaining, unredeemable balances to gift cards from other retailers available on the Leverage site. “
I work for a company that manages and tracks gift cards and I’ve been following the sharper image bk on savvywallet.com. Below are the ways to file a claim to get your gift card back. Bear with me, it’s long:
1. File a claim with the federal bankruptcy court. Follow these steps:
A. Because The Sharper Image’s bankruptcy was filed in Delaware, you have to visit the Delaware Bankruptcy Court Page.([www.deb.uscourts.gov]) Scroll down to Sharper Image.
B. Fill out Form 10 from the Federal Bankruptcy Court. ([www.uscourts.gov])
C. Download, print and sign it, and mail it to:
Kurtzman Carson Consultants, LLC ([www.kccllc.com])
Jonathan Carson
2335 Alaska Avenue
El Segundo, CA 90245
310-823-9000
310-823-9133
D. If you have trouble call the Bankruptcy Judges Division at 202.502.1900. Explain your situation, and they will walk you through the process. You will get a person on the phone as well.
E. Take these steps to file a claim with the Federal Bankruptcy Court
2. Take advantage of the offer from competitor The Sharper Image’s competitor, Brookstone, to give a 25 percent discount to anyone who surrenders their Sharper Image gift card or certificate. [www.brookstone.com]
3. Try filing a claim with your credit card issuer, if you used a credit card to buy a Sharper Image gift card
A. Request a refund from the card issuer.
B. American Express is ‘working on behalf’ of it’s card holders who submit such claims, even if the submission is beyond the 60 day statutory limit. This will be on a case by case basis.
C. Also, AMEX cardholders who opted for the Sharper Image gift card as membership rewards programs can return it and have their rewards points re-credited to your account. MUST DO IT WITHIN 60 DAYS
4. Also if a card that you gave or received was purchased from LeverageCard.com, Leverage has a bankruptcy policy that allows cards that are purchased via LeverageCard.com to be replaced with any retailer of choice. You can read more here. ([findarticles.com])