When gadget galleria Sharper Image stopped accepting gift cards only days after filing for bankruptcy protection in February 2008, consumers were left holding an estimated $19 million in useless plastic. But a class-action case against the company has managed to wrest some money from the shuttered company for those who were screwed over three years ago.
Earlier this year when the Sharper Image declared bankruptcy, they briefly stopped accepting gift certificates. Eventually, they did start accepting them again — but with the requirement that consumers buy twice the face value of the card. This, it seems, has caused a fair amount of panic among consumers. Chain emails are circulating warning shoppers not to buy gift cards from various retailers — claiming that they are going out of business. But are they?
When Sharper Image went under (oh no, where will we find a new vibrating massage pinball machine for dad?), people lost about $60 million locked up in gift cards, reports NYT. If you’re holding a gift card, you’re technically an unsecured creditor. If they go bankrupt..
Brookstone says they will accept your Sharper Image Gift Card. Sort of.
The Shaper Image says that it will resume redemption of gift cards, but there’s a catch.
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.
Hey want to buy an “ionic air filter”? You don’t? Is it because of that annoying class action lawsuit? Hey guess what? You’re not the only one! After losing a class action lawsuit Sharper Image ” said in court papers it fell victim to “negative publicity” as it fought lawsuits over its Ionic Breeze air purifiers.”
A judge rejected a settlement that would have granted a $19 Sharper Image coupon to consumers who purchased the Ionic Breeze… and $1.8 million in fees to the lawyers.
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A reader squirts, “I just came across your website today…pretty funny stuff! I have to relate to you an experience last week that for some reason really left me fuming.”