In late December, Borders informed several of it's publishers their payments would be delayed. This fueled speculation the national bookstore chain is getting close to filing for bankruptcy protection.
ScripSmart has placed the Borders Gift Card on our list of gift cards to avoid for several months because we consider the company to be financially unstable. It looks like we may have been right about this one; if you own a gift card for Borders, we recommend making plans to use it soon. Keep in mind, you can also redeem it online at borders.com.
If Borders decides to file for bankruptcy protection, it's likely to file for Chapter 11 and continue to operate while it reorganizes it's finances (eliminates debt). Often times, a company in Chapter 11 will ask the Bankruptcy Court for permission to continue accepting gift cards and often that request is granted. That's good for gift card holders, but this event is a red flag to go out and use that gift card today!
Remember, ScripSmart offers a free alert system which will send you a note via email if we catch wind of a company going in the wrong direction which, in turn, puts the value of your gift card at risk. Sign up for a free account here and register your gift cards now.