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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?

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Zephyr
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1 Answers1

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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.

JoeTaxpayer
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