Longstanding retailer Harry & David has filed for Chapter 11 bankruptcy protection; the Oregon based merchant has been in business since the 1930's. Gift cards will still be accepted for payment and while Chapter 11 indicates the company plans to restructure and remain in business, now is a great time to go get some merchandise with your Harry & David Gift Card.
According to a recent Bloomberg article, the retailer faces stiff competition from lowcost internet retailers, a trend I expect to continue. Assuming the competition remains fierce, Harry and David will need to rethink their business model. I expect a sizable portion of it's factory outlet stores to close doors and the product line to be slimmed down, all in an effort to reduce debt and capitalize on the changing landscape.
Keep in mind, the Harry & David Gift Card is also redeemable online at harryanddavid.com.
Private Companies: Tougher To See It Coming
Harry & David was on ScripSmart's list of gift cards to avoid. While there were a few articles in the press covering the poor financial condition of the company, we just didn't have much insight into their financials. Thankfully gift cards are still being accepted and we may become more aggressive in adding merchants to the list of gift cards to avoid. One thing is certain: until this matter is cleared up, the Harry & David Gift Card will remain on our list of gift cards to avoid and those who own them should redeem ASAP!