Is your gift card worthless after a business closes?

Hampden County

We purchase gift cards all the time, but what happens when the business closes?

If a store or restaurant unexpectedly closes, there are some actions you can take to try and recover the cost of a gift card.

Toys ‘R’ Us, Bon Ton and Payless shoe source are some stores that have closed in recent years in Western Massachusetts.

You may not be able to get a refund for a gift card after the business closes, but if the store switches ownership or is bought out by another business, you can always ask the new owner if they will honor your gift card.

“There may be no options available to the customer but What you may want to do is to ask the new owner if they will accept the gift card, often times they will work the customer so they can continue their business,” Springfield Director of Consumer Information, Milagros Johnson told 22News. 

Johnson recommends using gift cards as quickly as possible to prevent getting stuck. 

She said her office does get complaints about gift cards for businesses that closed, especially hair salons and spas. 

If you paid for the gift card with a credit card, try contacting your credit card company, they might be able to reverse the charge. 
 

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