Issue No. 3 - Dec 08, 2007
Two gift card issues: one a Loser and one a Winner. We "Drank The Kool-Aid" but should have drunk the beer (Coors).
Here are two topical gift card issues...some of you unfortunately may be involved with one...and most of you --- unfortunately --- can not be involved with the other. First up...a look at a situation where we, as well as many stake-holders, "drank the Kool-Aid" and believed what the company said, one for which there are no winners but likely many losers...
The Bombay Company. Unlike the deplorable events of Jonestown, no human died from this massacre, however another poorly-managed company will soon be off to the retail graveyard. On September 20, 2007, The Bombay Company, operators of about 385 stores in the U.S. and Canada, announced they had filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Court, and on the same day, similar action in an Ontario Superior Court of Justice for its Canadian operations. The company had secured a commitment for $115 million in debtor-in-possession (DIP) financing from General Electric Capital Corporation and GE Canada Finance Holding Company. Direct from the company's website: "After considering a wide range of alternatives, this course of action was seen as the best route to help preserve our internationally respected brand while working to secure our future" said David B. Stewart, Chief Executive Officer of the Company. In that same press release, it was clearly stated "the Company intends to:
- Conduct business as usual through its retail stores and Internet websites.
- Honor its customer service policies such as returns, exchanges, credits, and its gift card program."
Our own website (GiftCardTRACKER.com) did not launch until late October 2007. A function on our site, THE RETAIL RADAR SCREEN, sends email alerts to our registered users who may have a gift card or gift certificate in their MY GIFT CARDS vault of gift card information whenever a national or regional retailer experiences a situation similar to what befell The Bombay Company. This can serve as a warning or pre-emptive strike that trouble may be on the horizon...that a massive round of store closings, disruptions in service, or even total liquidation may ensue. A prompt to dig out that gift card from the desk drawer, before it turns in to a worthless piece of plastic (they do make a handy windshield scraper on these approaching winter days). We were aware of the difficulties facing The Bombay Company: houses are not selling very well, so people are not buying as much furniture and wall-coverings from Bombay stores and other retailers similar to theirs. The initial troubling announcement came out almost one month before our launch, however, we could have sent an email alert to benefit those early visitors to our website. But, we drank the Kool-Aid. While David B. Stewart may not have written these exact words, he surely must have approved of the statement written by his public relations department: "Honor its customer service policies such as returns, exchanges, credits, and its gift card program."
Flash forward to November 17, 2007, when many malls and localities really jump-start their holiday festivities. The City of Norfolk, Virginia, near where I live, held their HOLIDAYS IN THE CITY Parade that evening...winding its way through downtown Norfolk and just a block away from the beautiful MacArthur Center, where there happens to be a Bombay store. You may be one of those holders of a Bombay gift card...you know, the one you received last year for Christmas, and put away to use for this year's holiday. When you plopped it down at the checkout counter, the sales clerk pulled out this announcement (which was also posted on The Bombay Company website under Restructuring Information): "Effective Saturday, November 17, 2007...Bombay will no longer honor Gift Cards, Gift Certificates or Store Credits as a form of payment. Customers with outstanding Gift Cards, Gift Certificates and Store Credits must seek payment through the Bankruptcy Court. We appreciate your understanding that store employees and managers do not have the authority to override this directive." Yep, we drank the Kool-Aid alright from the September 20, 2007 press release. Even in the month (following our 10/19/07 website launch and before this regrettable announcement) a call to action could have arisen to redeem any Bombay and BombayKIDS gift cards immediately. For that, we apologize...and will now post any troubling news front and center. Not to help speed the affected retailer's demise, but our obligation, and the premise for this site, is and will continue to be to serve the gift card holders.
Maybe unfortunate holders of Bombay Company gift cards, who are likely to only receive pennies for each dollar of value (if anything at all)...should send The Bombay Company CEO David B. Stewart some of that Kool-Aid. You can find his company address, and information on submitting a bankruptcy claim, on the company website: www.BombayCompany.com
Now...a winning offer available to some, but unfortunately not to all. This is from Coors Brewing Company, one that will refund $10 by mail for purchasing a $20 minimum value gift card. Any gift card. And, NO BEER PURCHASE IS REQUIRED. What's the catch? There is none! Breweries and wineries frequently offer promotions, similar to this, to help drive traffic in to the stores their beverages are featured in. But, you have to hunt for the counter or rack displays to find the refund forms, and not all retailers that feature the product (in this case, COORS or COORS LIGHT) may participate. I found my refund form at a WaWa store, offering gas, coffee (A+ selection at that!), convenience items, fresh salads and great sandwiches. I also spotted some at the Customer Service Counter for our local Farm Fresh store (a unit of the behemoth SUPERVALU INC. of Eden Prairie, MN). Only the original refund form may be submitted (no copies or reproductions are accepted), the submitter must be at least 21 years of age, limit of one $10 refund per household, no P.O. boxes may be used, the gift card must be purchased between 11/01/07 and 12/31/07, the original gift card receipt must be included, and the submission must be received by January 31, 2008. (WHEW! All of those requirements make me thirsty!). Oh, there is one more stipulation: the $10.00 rebate is offered only to the fortunate residents of the states of Alabama, Arkansas, Connecticut, Hawaii, Kentucky, Maine, Missouri, North Carolina, New Jersey, New York, South Dakota, Utah, Virginia, Vermont and West Virginia.
We drank the Kool-Aid, but should have had the Coors.
The consumer holds all of the cards.
Ken Hawkins
The Card Shark
Please feel free to submit your thoughts and ideas to KHawkins@GiftCardTRACKER.com
ALERT! ALERT! ALERT! After the posting of this issue on December 8, 2007, we received reports that the computer, software and electronics retailer CompUSA will be closing all of their stores following the 2007 Christmas holiday season. We have not received an exact closing date for their stores. As of the date of this posting, their website is still offering gift card sales. However, we would suggest, that unless the gift card recipient is able to use the card immediately (before the end of 2007), you stay away from purchasing this brand. Another consideration: how, for example, would any return be handled (should there be a service problem with the item purchased with a gift card) once the chain shuts down?