Borders (in US) Gift Cards at Risk

wallcraft · 12-30-2010, 07:32 PM

As Mike Cane points out, the WSJ is reporting that Borders is delaying payments to some publishers. If Borders files for bankruptcy, gift cards are essentially worthless. So if you got a pile of Border's gift cards for Christmas, be aware of the risk involved with holding on to them.

This is true of any gift cards in the US, but Borders is reportedly in very poor financial shape and so their cards are more likely than most to become worthless.

GA Russell · 12-30-2010, 08:53 PM

Here's the Reuters report:

http://news.yahoo.com/s/nm/20101230/bs_nm/us_borders_1

kennyc · 12-30-2010, 09:09 PM

Uh Oh!

SeaBookGuy · 12-30-2010, 09:14 PM

I'm on the verge of cashing in some of my e-rewards credit for $15 in Borders Bucks - I have lots of credits, but the award is only redeemable once per calendar year.

xmiyux · 12-30-2010, 09:49 PM

Well crap. I got a few cards for Christmas. They thought I could use them to buy Kindle books. :lol:

abookreader · 12-31-2010, 11:07 AM

shoot. Thanks for the warning.

I have about $100 worth that I was planning on stretching out for a couple of months but maybe I'd should use them up.

xmiyux · 12-31-2010, 11:23 AM

No wonder they are heading that way. I called to have a book ordered for me (because they don't carry it in store) and the only way they will order it for me is if I pay up front. And then they claim it will take a week and a half to get it.

Meanwhile Amazon is like 10$ cheaper and will have it to me in two days. Absurd. So now I have to go to the store and find a decent cookbook that they have in stock.

issybird · 12-31-2010, 11:50 AM

Thanks for the warning. I've been sitting on some Borders credit and obviously, it's time.

NNolan · 12-31-2010, 02:50 PM

Yeah, thanks for warning. I got some as gifts last week that I was saving to use on "new release" ebooks between January and June. I'll try to use them up quickly now.

bgalbrecht · 12-31-2010, 03:21 PM

While it's probably best to use up Borders gift cards as soon as possible, if Borders goes into Chapter 11 bankruptcy, they may request the court to allow them to honor the gift cards. If they don't, it pretty much guarantees that they lose a sizable share of their customer base.

questionfear · 12-31-2010, 03:42 PM

Quote:

Originally Posted by bgalbrecht

While it's probably best to use up Borders gift cards as soon as possible, if Borders goes into Chapter 11 bankruptcy, they may request the court to allow them to honor the gift cards. If they don't, it pretty much guarantees that they lose a sizable share of their customer base.

There's a good chance they may have a Sharper Image-style issue, where you can only use your gift card IF you spend double the amount or something similar. Bankruptcy court doesn't have to straightforward honor the cards.

Steven Lake · 12-31-2010, 06:12 PM

Ya know, I'm rooting for Borders to survive (they do serve a positive benefit in this world still), however, bankruptcy may actually be a good thing for them. Why? If it's chapter 13, it will go under court control and a judge or several of them will decide what will happen to the company. The nice part about that is they can overrule the board, and the shareholders, and force the company to do things they othewise wouldn't. Most companies who come out of Chapter 13 are actually stronger than at any time in their history. However, if Borders goes Chapter 7, they'll officially be considered dead. So I'm cheering for them to go Chapter 13 as they'll benefit from it. Yes, bankruptcy sucks, but my gawds, the amount of fat and bad things you cast off (including greedy, corrupt investors and corporate managers) is incredible and things end up better on the other end.

Forster · 01-01-2011, 09:42 AM

Quote:

Originally Posted by Steven Lake

Ya know, I'm rooting for Borders to survive (they do serve a positive benefit in this world still), however, bankruptcy may actually be a good thing for them. Why? If it's chapter 13, it will go under court control and a judge or several of them will decide what will happen to the company. The nice part about that is they can overrule the board, and the shareholders, and force the company to do things they othewise wouldn't. Most companies who come out of Chapter 13 are actually stronger than at any time in their history. However, if Borders goes Chapter 7, they'll officially be considered dead. So I'm cheering for them to go Chapter 13 as they'll benefit from it. Yes, bankruptcy sucks, but my gawds, the amount of fat and bad things you cast off (including greedy, corrupt investors and corporate managers) is incredible and things end up better on the other end.

So has Borders been plagued with greedy corrupt investors and corporate managers?

rhadin · 01-01-2011, 10:54 AM

Quote:

Originally Posted by Forster

So has Borders been plagued with greedy corrupt investors and corporate managers?

No, only with short-sighted investors and managers who believed in micro-managing.

Forster · 01-01-2011, 12:08 PM

Quote:

Originally Posted by rhadin

No, only with short-sighted investors and managers who believed in micro-managing.

Well that and a dieing business model. With contracting retail sales in B&M type of stores somebody is going to have to go so the others can survive a while longer. I'm not a big fan of bankruptcy (it does have its place). In this case one of the big chains going away will help strengthen the competition. Allow them to stay in business through bankruptcy and you are only going to hurt others such as B&N.

But whatever it's only a matter of time for both of them anyway.

Ironically my wife and son both got Borders gift cards from extended family this year. Never had gotten any before. We have to drive 2 hours to get to the nearest Borders. I had to do an internet search cause I didn't know where any Borders were.

It's too bad they didn't get an Amazon gift card like I got cause they'd already have their books.

12-30-2010, 07:32 PM	#1
wallcraft reader Posts: 6,975 Karma: 5183568 Join Date: Mar 2006 Location: Mississippi, USA Device: Kindle 3, Kobo Glo HD	Borders (in US) Gift Cards at Risk As Mike Cane points out, the WSJ is reporting that Borders is delaying payments to some publishers. If Borders files for bankruptcy, gift cards are essentially worthless. So if you got a pile of Border's gift cards for Christmas, be aware of the risk involved with holding on to them. This is true of any gift cards in the US, but Borders is reportedly in very poor financial shape and so their cards are more likely than most to become worthless.

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12-30-2010, 08:53 PM	#2
GA Russell Montreal wins Grey Cup! Posts: 7,583 Karma: 31484197 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	Here's the Reuters report: http://news.yahoo.com/s/nm/20101230/bs_nm/us_borders_1

12-30-2010, 09:09 PM	#3
kennyc The Dank Side of the Moon Posts: 35,872 Karma: 118716293 Join Date: Sep 2009 Location: Denver, CO Device: Kindle2; Kindle Fire	Uh Oh!

12-30-2010, 09:14 PM	#4
SeaBookGuy Can one read too much? Posts: 2,015 Karma: 2487799 Join Date: Aug 2010 Location: Naples, FL Device: Kindle PW 3, Sony 350 and 650	I'm on the verge of cashing in some of my e-rewards credit for $15 in Borders Bucks - I have lots of credits, but the award is only redeemable once per calendar year.

12-30-2010, 09:49 PM	#5
xmiyux Enthusiast Posts: 31 Karma: 106 Join Date: Jul 2010 Location: West Virginia Device: Kindle 3	Well crap. I got a few cards for Christmas. They thought I could use them to buy Kindle books. :lol:

12-31-2010, 11:07 AM	#6
abookreader Wizard Posts: 1,516 Karma: 2567610 Join Date: Oct 2009 Device: Kindles - Keyboard, Fire, 2-US, iPhone, iPAD	shoot. Thanks for the warning. I have about $100 worth that I was planning on stretching out for a couple of months but maybe I'd should use them up.

12-31-2010, 11:23 AM	#7
xmiyux Enthusiast Posts: 31 Karma: 106 Join Date: Jul 2010 Location: West Virginia Device: Kindle 3	No wonder they are heading that way. I called to have a book ordered for me (because they don't carry it in store) and the only way they will order it for me is if I pay up front. And then they claim it will take a week and a half to get it. Meanwhile Amazon is like 10$ cheaper and will have it to me in two days. Absurd. So now I have to go to the store and find a decent cookbook that they have in stock.

12-31-2010, 11:50 AM	#8
issybird o saeclum infacetum Posts: 20,229 Karma: 222235366 Join Date: Oct 2010 Location: New England Device: H2O, Aura One, PW5	Thanks for the warning. I've been sitting on some Borders credit and obviously, it's time.

12-31-2010, 02:50 PM	#9
NNolan Compulsive Gadget Geek Posts: 395 Karma: 4219324 Join Date: Mar 2010 Location: Almost Canada Device: One of each, and two in some cases	Yeah, thanks for warning. I got some as gifts last week that I was saving to use on "new release" ebooks between January and June. I'll try to use them up quickly now.

12-31-2010, 03:21 PM	#10
bgalbrecht Wizard Posts: 1,806 Karma: 13399999 Join Date: Aug 2007 Location: US Device: Nook Simple Touch, Kobo Glo HD, Kobo Clara HD, Kindle 4	While it's probably best to use up Borders gift cards as soon as possible, if Borders goes into Chapter 11 bankruptcy, they may request the court to allow them to honor the gift cards. If they don't, it pretty much guarantees that they lose a sizable share of their customer base.

12-31-2010, 06:12 PM	#12
Steven Lake Sci-Fi Author Posts: 1,157 Karma: 14743509 Join Date: Sep 2009 Location: Michigan Device: PC (Calibre)	Ya know, I'm rooting for Borders to survive (they do serve a positive benefit in this world still), however, bankruptcy may actually be a good thing for them. Why? If it's chapter 13, it will go under court control and a judge or several of them will decide what will happen to the company. The nice part about that is they can overrule the board, and the shareholders, and force the company to do things they othewise wouldn't. Most companies who come out of Chapter 13 are actually stronger than at any time in their history. However, if Borders goes Chapter 7, they'll officially be considered dead. So I'm cheering for them to go Chapter 13 as they'll benefit from it. Yes, bankruptcy sucks, but my gawds, the amount of fat and bad things you cast off (including greedy, corrupt investors and corporate managers) is incredible and things end up better on the other end.

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