Buzz
If you're anxious about the fate of your Sears gift cards during the retailer’s bankruptcy process, don’t worry—there's no cause for concern just yet.
The stores, including Kmart and Shop Your Way, are still operating, but you should try to use your gift cards sooner rather than later. According to Consumer Reports, 46 Sears and Kmart locations are scheduled to close by November, and 142 additional stores will shut down by the end of the year. There’s a chance the retailer might cease operations entirely. USA Today reports that “liquidation sales at the additional stores are expected to begin within two weeks.”
Christina Tetreault, senior staff attorney at Consumers Union, the advocacy division of Consumer Reports, advised, “Anyone with a Sears gift card should use it now,”
If Sears shuts down permanently, a bankruptcy court will determine whether or not gift cards must be honored. Tetreault explained, “It could take years for cardholders to recover funds—if they get anything at all.” While it’s possible some competitors might choose to honor Sears gift cards, keep an eye out for that. The safest approach is to use them now and refrain from purchasing any new ones for the time being.
In addition to gift cards, the company is expected to uphold product warranties and its Shop Your Way loyalty program—for the time being. A customer letter confirms that Sears Mastercard and the Sears Credit Card will remain unaffected.
Sears has launched a bankruptcy site for those who want to stay updated on the latest developments.
