6

With reference to this question, can companies that get taken over set limitations on honouring gift cards issued prior to the take-over? Also if a company just changes it's name, can it set limits on the gift cards issued under the old name?

7

It depends completely on the nature of the takeover. When a business is bought, the new owner takes on the obligations of the prior owner, the debts don't just go away. When a business files for bankruptcy, its debts may get discharged, and gift card holders can easily be the first ones to get nothing back. A case in point was Sharper Image who stopped honoring gift cards even while the doors were open as they filed for bankruptcy.

-6

I know this is old, but Joe Taxpayer is wrong. When you dissolve a corporation in selling it, all liabilities go with the old owners and the new owners, smartly starting with a new corporation and taxpayer ID, start with a clean slate. The only way this is not true is if the new owners did not change a thing legally and kept everything the same, other than there names, which would be entirely insane if you asked any lawyer in the country. Gift cards are a touchy situation, if not negotiated in the deal, by law the new owners DO NOT have to take them. Yes, it's good PR, but when there's a considerable amount of money out there it could bury the new owners by giving away free stuff.

  • 2
    We agree, I said they don't have to take them. "gift card holders can easily be the first ones to get nothing back" and I cite an example of Sharper Image not taking them. I can always be wrong, but not if you repeat exactly what I said. Wrong is if they have to honer the old cards. Did you even read my answer? – JoeTaxpayer Mar 3 '16 at 23:57

protected by Chris W. Rea Dec 20 '17 at 0:39

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