Business · Companies · 10 hrs ago

Galeria still accepts gift cards, but insolvency could limit their value

Galeria still accepts gift cards, but insolvency could limit their value

Galeria, a German department-store chain, filed for insolvency in early October for the fourth time in six years.

The company says it still accepts gift cards and gift cards bought by customers at its checkouts and online, although some customers have reported signs in certain stores saying they are not accepted.

The chain is also reviewing 33 stores, but no closures have been confirmed.

If insolvency proceedings are formally opened, the company can no longer accept those cards.

Holders can instead register their claim with the insolvency administrator, alongside other ordinary creditors.

They may receive only a small share of the card’s value; the article says such claims are usually paid at less than five percent.

Cards issued before insolvency would remain invalid even if the business is later restructured and resumes trading.

Sources

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