11/05/2010 UPDATE - Landry’s Restaurants, Inc. has won out in the bidding process and acquired Claim Jumper Restaurants, LLC for 76.6 million. We're removing the Claim Jumper Gift Card from our list of gift cards to avoid.
Claim Jumper, a restaurant chain operating 45 locations in the western United States, has voluntarily filed for Chapter 11 bankruptcy protection. The company intends to emerge from bankruptcy in about two months. After which, Claim Jumper will be debt free and ready to sell all of it's assets to an affiliate of Canyon Capital, a Los Angeles based asset manager.
Gift Cards Will Still Be Accepted And Sold
In fact, Claim Jumper is asking the Bankruptcy Court for permission to honor gift cards. That's a good thing for Claim Jumper Gift Card holders and the request will likely be granted.
ScripSmart Consumer Tip
Regardless of Claim Jumper's intentions to continue business as usual, we recommend those who own a Claim Jumper Gift Card to redeem it soon. Also, if you're considering the Claim Jumper Gift Card as a gift, hold off until the dust settles. It's better to be safe than sorry.
Up In The Air
Claim Jumper has entered into a Asset Purchase Agreement with Private Capital Partners, an affiliate of Canyon Capital Advisors LLC. However, the company must entertain higher bids for it's assets from other qualified bidders. Also, while the chances are slim, it's possible gift cards will no longer be accepted per court order.
Website Dedicated To Restructuring
Claim Jumper has setup a dedicated website for disseminating information covering the companies bankruptcy and subsequent sale. It's great to see a company make an effort to communicate the details of a bankruptcy filing. It's something we'd like to see become the standard. In fact, the third bullet on their list of common questions for consumers covers gift cards and their intentions to continue reddeming.