As of 2015, it is not possible to redeem gift cards from the Borders bookstore chain, as Consumerist reports. In October 2015, the U.S. Supreme Court declined to hear a case filed on behalf of Borders gift card holders who lost the value of their cards after Borders declared bankruptcy in 2011.Continue Reading
When Borders closed its stores, consumers were left with approximately 17.7 million unused gift cards worth $210.5 million, according to the Los Angeles Times. The company's liquidation plan specified that gift card holders had until June 1, 2011, to file a claim in the bankruptcy, but no claims were filed. Attorneys for the cardholders argued that Borders did not adequately publicize this method of recovering card value.
Some cardholders filed a lawsuit arguing that they should be able to submit late claims, but it was rejected by the bankruptcy court, as Consumerist reports. The case continued to the level of the U.S. Supreme Court, which declined to hear it in October 2015, which ended its appeal.
Giftcards.com reports that consumers are vulnerable to financial losses by holding gift cards when a company declares bankruptcy. Sometimes, companies declare that gift cards are unusable even when their physical stores are still open for business. Giftcards.com maintains its Chapter 11 Gift Card Watch List to assist consumers in protecting their assets.Learn more about Credit & Lending