KB Toys to honor gift cards through January 11, 2009
KB Toys will honor gift cards through at least January 11, 2009. According to this story by Reuters, the toys retailer has entered into an agreement with the NY State Attorney General to honor outstanding gift cards in NY State through January 11, 2009 while it completes liquidation of its stores. The company will post a sign in all stores 10 days prior to any decision to stop honoring consumers’ gift cards. While this deal specifically applies to NY State, I would be surprised if they did anything different in other states.
This agreement became necessary because while the bankruptcy judge authorized KB Toys to continue to honor gift cards during liquidation, it did not require the store to do so. This meant there was a possibility the retailer was not going to honor gift cards during the liquidation (although there is no evidence of that), and hence the intervention by the NY Attorney General. The company sold $2 million in gift cards this year and holds about $12 million in unredeemed gift cards on its books.
So, there you have it – a final chance to use your KB Toys gift card before you lose them.
- Press My Buttons !
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Gift Card holders in NY were lucky. In Las Vegas, NV, store stopped honoring gift cards on January 1, 2009. And I learned about KB Toys bankrupcy today – January 11, 2009. It seems that KB Toys became a master in filing for bankrupcy – twice in 4 years !!!