Wall Street Journal: Borders does not need to compensate unused gift card holders, judge rules
Consumers who got stuck with unused Borders gift cards will not be compensated by the defunct bookstore, the Wall Street Journal reports.
A bankruptcy judge ruled against a case this week from two consumers who got stuck with $125 in unused gift cards to the former Ann Arbor-based bookstore chain — which closed its stores last year as part of its Chapter 11 bankruptcy liquidation.
A judge ruled against two consumers who said they should be reimbursed for their unused Borders gift cards.
AnnArbor.com file photo
The individuals said they should be allowed to file late claims for reimbursement because Borders did nothing to inform them of the claims deadline.
But Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan disagreed: he said Borders wasn’t required to individually notify every gift card holder, according to the report.
He said because gift cards are not intended to be used by the purchaser, Borders had no way to trace card holder’s identities.
Read the full Wall Street Journal report here.
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
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