What to Do If You Have a Sears Gift Card
Consumers worried about what will happen to their Sears Gift Cards when a retailer goes bankrupt can breathe a sigh of relief – at least for now.
Stores including Kmart and Shop Your Way still exist, but you’ll want to use your gift cards as soon as possible, according to Consumer Reports : 46 Sears and Kmart stores will close by November with 142 more to close. the end of the year, and perhaps the retailer’s doors will close forever. USA Today reports that “liquidation sales at additional stores are expected to begin within two weeks.”
“Anyone with a Sears gift card should use it now,” said CR Christina Tetro, senior associate at Consumers Union, Consumer Reports’ advocacy arm.
If Sears closes its doors permanently, bankruptcy court will decide whether or not gift cards need to be paid. “It can take years for cardholders to get their funds back – if they get anything at all,” Tetro said. Competitors will probably respect Sears Gift Cards, but you’ll have to keep an eye out for that. Your best bet is to use them now and not buy them for the foreseeable future.
In addition to gift cards, the company is expected to honor product warranties and its Shop Your Way loyalty program – at least for now. A letter from a customer says Sears Mastercard and Sears credit card will not be harmed.
Sears has set up a bankruptcy site if you want to keep up with the news.