Store sells gift cards then closes doors two weeks later. What to do?

[sandman748]

I bought a gift card from a local restaraunt three weeks ago. I just found out that two weeks later they closed their doors for business. There was no bankrupty, the building they were renting was sold.

When the card was bought, they neglected to tell me it would be no good in two weeks time. Anyone know what action someone can take? It's only $50 but it's the principal that really bothers me. They are not returning messages left on their business line.

I know the name of the owner but am hesitant to call his home phone (which is in the phonebook)

[blainehamilton]

Hope you bought with your credit card - call them and demand a chargeback.

If you paid cash or debit, you are screwed. Never pay cash for a gift card or group deal that isn't for a national retailer.

[Coz4k]

You can take legal actions.

For 50$ it does not worth it.

You best chance is to threaten them that you will take legal actions and hope that they refund you.

Thats it.

[jcon]

Which restaurant?

[booblehead]

Since you know the owner's contact info., just go to his house and demand he hands over $50 cash refund back to you (if you initially paid that GC in cash).

[sandman748]

Which restaurant?

Brass Lantern in Steinbach.

I feel for the guy. From what I've read it sounds like he got screwed. But at the same time, they would have known they were closing when they took our money.

[Hunter316]

Gift cards are usually the last items that are compensated for even if a company declares bankruptcy so there is really no protection at all. If a company is not in business then the holder of a gift card is viewed as a creditor and must file a claim with the courts in order to possibly get paid. Showing up on the former owner’s door and demanding money is a good way to get yourself arrested.

[bylo]

But at the same time, they would have known they were closing when they took our money.

Sometimes that can be a tough call. The owner needs money to keep the business alive. He sells gift cards or participates in a Groupon-like promotion in order to try to raise cash. He does this in good faith. But unfortunately he doesn't raise enough money quickly enough and goes broke, leaving those who bought the GCs etc. out in the cold.

OTOH if the owner had declined your GC purchase on the grounds that he didn't know if he'd be able to stay in business long enough, then word of this would get out and people and his business would suffer even more, leading to an even earlier demise.

The whole thing hinges on whether he acted in good faith in a sincere effort to save his business or if he tried to scam people for as much cash as he could get before his business was forced to close. Only you and fellow patrons who know the guy can make that determination.

As has been said, from a practical point of view, if possible do a credit card chargeback. If the restaurant is broke the money will come from the CC company's insurance fund.

[CheeseDie]

I will never buy a gift card from ANY retailer unless it is a gas station like Petro Canada/ walmart... iTunes...

Bestbuy and FS I guess are OK, Staples...

Anything else is iffy and not a good idea.. Time for consumers to wake up and smell the K-cups... stop spending money!

Oh yes I am quite insane...

[bylo]

I will never buy a gift card from ANY retailer unless...

1. It's at a substantial discount, e.g. via Groupon, Google Deals, etc. (If there's no discount then why buy a GC when you can use/give cold hard cash? (Those new plastic $100 notes are really cool to give.))
2. There's no expiration date, ongoing maintenance fees, etc.
3. It's from a reputable, established store.
4. It's paid for by credit card (so there's chargeback if the store fails or cash rebate/points if it doesn't.)

[CheeseDie]

1. It's at a substantial discount, e.g. via Groupon, Google Deals, etc. (If there's no discount then why buy a GC when you can use/give cold hard cash? (Those new plastic $100 notes are really cool to give.))
2. There's no expiration date, ongoing maintenance fees, etc.
3. It's from a reputable, established store.
4. It's paid for by credit card (so there's chargeback if the store fails or cash rebate/points if it doesn't.)

Ahhh... there is a reason for this..

I would buy a gift card Discount (like $10 and get $20) but only if I was going to use it for myself... why? because I dont want the person I give it to to get second rate treatment... I want them to go in there like they had COLD HARD CASH in hands...

For movie packs it is Ok, like the buy 2 tickets but you also get free small popcorn and sodas type gift...

And yea those plastic $100 are cool I have one in my collection! good last minute gift!

The reason I would like to give a gift card is because I want the person to treat themselves... if you give someone a gift card for somthing like BB /FS walmart Pharmaprix they will spend it on things that they need like toothpaste, cell phone airtime... if they are that type of person...

If you give them something like iTunes (that you know they like) then they have no choice! he he he...

[Wingding]

The municipal licensing department in Steinbach should be able and willing to tell you who the licensed owner of the business is/was, and may have an alternate mailing address other than the restaurant itself. If it's an incorporated business (which most restaurants usually are) then you can get the Registered Corporate Address info from either Corporations Canada or the Manitoba government (depending on whether it's federally or provincially incorporated.) With that -- and assuming you have a receipt for the purchase (or at least the relevant bank/credit card statement, if you paid with plastic) -- you can file a Small Claims action against the corporation, demanding a refund of the gift card payment plus the costs of filing the action.

Good luck!

[bylo]

Wow! Another "honest" mennonite business owner screwing you over...

Wow! How do you "know" that the owner is "Mennonite"? And even if he is, how do you "know" that he's intentionally "screwing over" his customers?

P.S. Have you ever owned a business, ever had to make payroll when cash was tight, ever had to face creditors, ever had to declare bankruptcy, etc? (Didn't think so.)

[aggronieszka]

You are from where? Waterloo. ONTARIO. I rest my case. You have obviously never been to Steinbach, MANITOBA. 99% of the businesses are owned by mennonites in this town. Btw, my wife is mennonite.

Not sure if trolling or dumb.

Not all Ontarians think they're the centre of the universe. Many have been to, lived in, and have visited other towns, cities, villages in Canada and the world.

[bylo]

Not sure if trolling or dumb.

Probably both—plus a bigot.

Not all Ontarians think they're the centre of the universe. Many have been to, lived in, and have visited other towns, cities, villages in Canada and the world.

The same can be said of ex-residents of Steinbach, MB.

I'm surprised that someone who claims "Steinbach, MANITOBA. 99% of the businesses are owned by mennonites in this town" doesn't know that Waterloo Region and surrounding area is the home to 10s of 1,000s of Mennonites.

Btw, my wife is mennonite.

BTW many of my friends are Mennonites. I don't know one who'd intentionally "scam" others.

But whatever...

P.S. re, "Have you ever owned a business, ever had to make payroll when cash was tight, ever had to face creditors, ever had to declare bankruptcy, etc?" His non-answer is the definitive answer.