FAIRFIELD-SUISUN, CALIFORNIA
Kathleen Pender: Use it or lose it: Gift cards could become worthless if the issuer goes bankrupt [San Francisco Chronicle]
Jan. 2—If you received a gift card for Christmas, first thank the giver, then use it. Fast.
Many companies that issue gift cards — such as retailers, restaurants, movie theaters, gyms and spas — have been hard hit by pandemic shutdowns and are closing in large numbers. The number of retailers filing for bankruptcy in 2020 was the highest since 2009, according to S&P Global Market Intelligence.
When companies go bankrupt, their gift cards can become worthless. With smaller companies, it can happen overnight. With larger companies, consumers often have a period of time to use their gift cards, but not always.