Over the Christmas period, HMV went into administration, the second collapse in six years for the music and entertainment retailer.
The High Court has appointed KPMG to run the chain and try to keep all 125 stores open while a buyer is sought.
Consumer association Which? has warned that whenever a company goes into administration, the decision on whether it should honour gift cards is down to the administrators. And with this all happening amidst the holiday season, there will no doubt be many consumers wondering what to do with their vouchers.
Thankfully, KPMG has said that it will honour gift cards – while stores are still trading.
"Over the coming weeks, we will endeavour to continue to operate all stores while we assess options for the business, including a possible sale,” KPMG’s Will Wright told the BBC.
"Customers with gift cards are advised that the cards will be honoured as usual, while the business continues to trade."
Which? has released a statement urging those with gift vouchers to spend them in-store ASAP.
“It’s a worrying time for everyone when a company goes into administration but for customers, it’s important to remember that your consumer rights may be affected,” said Alex Neill, Which? managing director of Home Products and Services.
“If you have recently bought anything from HMV, you may not be able to claim a refund or exchange the item if the company ceases trading. If you have gift vouchers you should try to spend these in-store as soon as possible.
“If you are planning to shop in HMV and intend to buy something worth more than £100, make sure you use a credit card as you’ll be able to make a claim against your credit card company under Section 75 Consumer Credit Act if anything goes wrong.”
The retailer first fell into administration in January 2013. Three months later, Hilco signed a deal to see the restructuring firm take on around 141 HMV stores, nine Fopp outlets and around 2,500 employees.
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