Thursday, 28 May 2009

Why cash is king (over gift vouchers)...

Fashionista has learned from Retail Week that some very unhappy customers (or should she say creditors) of Principles have been plaguing the administrators at Deloitte with up to 200 calls a day about how they may go about redeeming their gift vouchers.

In most instances, on the insolvency of a retailer, holders of gift vouchers are just unsecured creditors of the insolvent company and have to stand in line with everyone else for little or no recovery. Occasionally though, where the business and assets of the retailer are sold, the buyer offers as a gesture of good will to honour all, or a reduced proportion, of the value of the gift voucher. They are, however, generally under no legal obligation to do so.

Fashionista has been frantically searching through her purse for all unused vouchers with a view to going on a major spree this weekend. Who knows, if such panic spending were to take off across the country, the recession could well be over before we know it.