Consumers Left to Wonder “What Now” When Retailers Close

 

Columbus, OH – The Limited, a local brand for over 50 years, announced at the end of 2016 that they would file bankruptcy and close their retail stores. This news garnered some questions from consumers about what to do about outstanding orders and gift cards.

What Happens to Outstanding Orders?

As of January 23, The Limited’s website, thelimited.com, states that all sales were final as of December 14, 2016, they can no longer accept any orders, and any order that has been placed but that has not yet been shipped will be cancelled. If a consumer placed an order, visit The Limited’s website to find out more information on the status of the order.

What About Gift Cards?

When a company files Chapter 11 bankruptcy like The Limited has, it allows the company to continue operations while it reorganizes for future stability. If a company files for Chapter 11 protection, they will often still redeem gift cards, fulfill services and deliver on goods. When a company files for bankruptcy, they can only honor gift cards if the court allows it.

To avoid problems, BBB advises that consumers redeem gift cards as soon as possible. If you are left with what seems like a useless gift card, debt.org suggests trying some of the following:

  • If you purchased the gift card from a third party vendor, contact the vendor. They may allow you to redeem the card at another store.

  • If you paid for the gift card with a credit card, contact your credit card company. In some cases, consumer protection laws may allow you to receive a refund.

  • Try using the gift card at a former competitor. The competing store has no obligation to honor the card and may not even have the means to do so. However, in some cases, stores accept their competitors’ gift cards or give you discounts in exchange for them. In these ways, they try to earn you as a customer.

  • Hold on to the gift card. Even though they may be useless right now, some companies emerge from bankruptcy and resume business. It’s possible that if that happens, they will honor gift cards from prior to the bankruptcy.

Customers in these situations can also file complaints with BBB and/or the FTC at ftc.gov.

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About BBB
Since 1912, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at bbb.org. BBB serving Central Ohio was founded in 1921, and serving 21 counties in Ohio, is one of 113 local, independent BBBs in the United States, Canada and Mexico.