About Retail Bankruptcies
In the current economic climate, retail bankruptcies are increasing. Store closings can negatively affect consumers, making refunds or returns impossible, and sometimes rendering store gift cards unusable. The Attorney General is committed to providing information to consumers affected by retail bankruptcies that will help consumers cope with the effects of retail bankruptcies and exercise their rights. In addition to providing information to consumers, the Attorney General's Office has also successfully intervened in retail bankruptcies to protect consumers' rights. For example, the Attorney General's Office intervened to ensure that Fortunoff, a jewelry and furniture retailer that is in bankruptcy proceedings, continued to honor gift cards for a period after the filing for bankruptcy and met its obligations to consumers who paid in full for in-stock furniture. The Attorney General's Office also obtained a commitment from KB Toys, a national toy retailer that filed for bankruptcy in December 2008, to honor New York consumers gift cards through the 2008 holiday season and the post-New Year shopping period.