AUSTIN – After declaring bankruptcy, RadioShack will now begin the process of compensating consumers for unused gift cards.
“Gift card holders can make a claim in the bankruptcy. If they have purchased a gift card, they should be compensated in full,” said Clinton A. Krislov of Krislov & Associates, the attorney representing the purported class of individual gift-card holders.
The claims process is part of the previous bankruptcy settlement agreement approved in the U.S. Bankruptcy Court in Delaware in September of 2015. Texas lead the settlement process and was joined by 23 other states and Washington DC.
“This implementation confirms that the voice of the consumer is being heard, and we are pleased RadioShack is honoring its commitment to customers holding millions in unredeemed gift cards," said Attorney General Ken Paxton in a press release. "In any bankruptcy proceeding, it's vital that the interests of consumers are represented and considered, and it's appropriate that former RadioShack customers have this opportunity to file and eventually redeem their claims."
Consumers with unused gift card claims purchased online, in store, or at an authorized seller will be treated as a priority claim, and will receive a full refund from the RSH Liquidating Trust. Cards purchased through third party sellers, or through merchandise returns or store promotions, will not qualify as priority claims, and may no receive any payment.
Krislov said that merchandise credits can be still used at any of the surviving stores at 50 cents per dollar.
Krislov has handled similar cases, such as Sharper Image, wherein gift card purchasers received full refunds.
The deadline for filing claims is December 2, 2016. Consumers can file proofs of claims at www.oldradioshackgiftcards.com.