Retail and Consumer Products Advisory: Selling and Honoring Gift Cards in Bankruptcy

more+
less-

These trying economic times have had an impact on almost every facet of consumer behavior, including gift card sales. The gift card market is significant: just one year ago, some sources estimated that gift card sales could grow to reach $100 billion in 2008 as compared with $80 billion in 2006.1 But actual spending on gift cards has fallen dramatically: a November estimate lowered projected gift card sales in 2008 to around $60 billion.2

Consumers may fear that gift cards will not be honored if the retailer in question files for bankruptcy or faces other financial challenges. Directors and officers of retail companies may worry about liability if the entity is not able to honor the cards it sells. These concerns highlight the need for retailers to understand the mechanics of selling and honoring gift cards in a difficult economy.

Please see full advisory for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Mintz Levin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×