Should businesses that are going out of business honor or reimburse gift cards?

Question

Today I went to my usual salon I haven’t been in over a year since the lockdowns. I had a $200 gift card my parents got me for my birthday from before the lockdowns. I made the appointment with my usual stylist since she still works there. When I went to pay with my gift card she said she couldn’t except it because they are under a new owner. The name and number of the salon was the same. This of course was very disappointing since that’s $200 in the trash. But I couldn’t help but feel business should reimburse the money since the gift card was paid for but never used, it was basically free money for the business. Do you think businesses that close down should be required to reimburse a gift card within a reasonable amount of time? In this case since it’s new owners that took over but kept the same name should they honor the gift card?

Answer

If a business is going under, no. They clearly don’t have the money to keep the doors open. It’s an unforeseen circumstance. If they’re bought out by a new owner, yes the mew owner should either accept older gift cards or reimburse for them. It’s more annoying that they wouldn’t accept it than that they wouldn’t reimburse it. As usually gift cards are not transferable to cash

Answer

If they didn't make a notification of the changes in a public way, you may have legal standing to request they honor it. Take a look at your state, or province/country's laws.

Answer

Yes, absolutely. They were paid $200 for that gift card. Of course they should honor it.

Answer

This happened with a restaurant I got my parents a gift card to. They sold to a new owner and changed the name, but the only notification they gave was on Facebook and I rarely use my Facebook. I literally bought the gift card in December for Christmas, and my parents went to the restaurant in February. My parents told them what happened and they declined the gift card. I think they should accept gift cards that were purchased within a year. I will now never go to that restaurant and neither will my parents. If they honored it, we’d probably frequent it a lot. I was also annoyed that chances are, the previous owners knew they’d be selling their restaurant and still sold a gift card to me (and probably many more since it was the holidays).

Answer

Unfortunately its not up to the company to reimburse gift card, that's up to the creditor and if they went bankrupt up to the courts. Of purchased on your parents credit cards they can either fill a claim with their bank or they can contact the credit cards vendor

Answer

Should they be required to? 
Yes 
Will they no.

Answer

It’s the same name???? That’s fucking bullshit. They’re petty for that one.

Answer

Yes I think so.

Answer

I don’t think the new owners should be held responsible. But I do believe that the previous owners should have announced they were selling and all gift cards need to be used by a certain time.  With that being said, where I live salons have been opened since June of 2020 (with limitations) and now are completely reopened. How long has it been since you’ve been there? Because you might have to hold yourself to some accountability.

Answer

The business your parents gave money to no longer exists. They were probably an LLC DBA “the name of the salon”, and now it’s a new LLC. They didn’t get your money, so they don’t have to provide the service for free, if that makes sense. 
It’s shitty, but that’s how it works.

Should businesses that are going out of business honor or reimburse gift cards?

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