In February 2011, I wrote about Borders filing for Chapter 11 bankruptcy protection and urged consumers to redeem their gift cards before it was too late. We've also listed the Borders Gift Card on our list of gift cards to avoid for quite some time as a warning consumers should not buy the Borders Gift Card.
The Doors Are Closing, Gift Cards Will Be Worthless
Late Monday, Borders Group, Inc. announced the doors will be closing for good. The company was unable to find a buyer and liquidation will begin as soon as this Friday, July 22, 2011. According to the company's press release, the liquidation process is expected to conclude in the month of September.
For anyone still holding a Borders Gift Card: go out there and redeem it now because it will soon be a worthless! It's not safe to assume gift cards will continue to be accepted through the entire liquidation process.
Unfortunately, the company's press release gives no information for gift cardholders. We've sent a note into Borders asking for more details on their plans for honoring gift cards.
As I'm writing this, Borders is still selling gift card via it's website. Let's hope they cancel any orders placed after this announcement.
Update: Borders got back to me with the following:
"...gift cards are being accepted through the liquidation sales. Sales are expected to begin as early as this Friday in some stores.Stores are expected to close by the end of September."
Also, gift cards are currently no longer being sold on borders.com.
A Not So Distant History Lesson: Hollywood Video
Not long ago, Hollywood Video (Movie Gallery) closed it's doors for good. They liquidated all assets and offered consumers the ability to redeem gift cards as long as the doors were open. Unfortunately, locations closed pretty fast and there was not much communication as to when each location would close.
My understanding is the doors for each location remained open as long as there was merchandise to be sold. In the end, the company's gift cards are now worthless and we moved it to the gift card graveyard. The Borders Gift Card will be in buried there, too.
ScripSmart Accounts Can Help
Remember, ScripSmart offers a free account system for helping consumers avoid getting stuck with a worthless gift card. We've already sent out messages to those who have registered ownership of the Borders Gift Card in their ScripSmart Account. If you'd like a little extra help on this front, just sign up here and add the gift cards you own. Also, we send other helpful email alerts to ensure you're getting the most of your gift cards.