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Fresh Produce: Will a bankrupt business honor gift cards?
Fresh Produce: Will a bankrupt business honor gift cards?

A reader asks about gift cards for the clothing retailer Fresh Produce, which has filed for bankruptcy protection. If the company goes down the Chapter 11 rabbit hole, are the gift cards still good? I get asked this question a lot -- pretty much any time a well-known company goes bankrupt. What happens to gift cards that customers still hold? Short answer: It depends. Under a Chapter 11 bankruptcy filing, as Fresh Produce is pursuing, a business reorganizes its financial obligations. The intent is to stay open and to continue serving customers. ASK LAZ: Smart answers to consumer questions Most of the time, such companies continue honoring gift cards. And even if they choose not...

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