(JeepersMedia)
We initially reported that people with RadioShack gift cards would have to use them up by March 5 or lose the entire balance. Great news if you happen to have found one buried in the far corner of your junk drawer: RadioShack has extended the period that they’re accepting gift cards to March 31.
The chain reportedly would like to wind things down tomorrow so they don’t have to pay April rent in their thousands of remaining stores, which is understandable. Whether they hand the keys over to designated auction winner Standard General or to a team of liquidators, another company will most likely be in charge as of April 1.
After that, we’re not even sure whether there will still be RadioShack brand stores around: one possible outcome of the bankruptcy auction is that the chain will be liquidated entirely, with only the remaining dealers and franchise stores maybe continuing to exist. Without a RadioShack supply chain, those stores could become something else.
People who dig up gift cards from defunct retailers can theoretically get something in exchange for the remaining value on the cards by filing as a creditor in the bankruptcy proceedings. After all, they do owe you money. However, you’d be very far down the list of creditors. In the case of RadioShack, even companies that lent the company millions of dollars to stay in business may not see much of the proceeds of this auction if Standard General wins, since most of the hedge fund’s bid for what’s left of the retailer is in the form of debt that RadioShack owes it.
RadioShack Customer FAQ [Radioshack]
Chapter 11 Gift Card Watchlist [Gift Card Girlfriend]
by Laura Northrup via Consumerist