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will vouchers and gift cards become a thing of the past?

21 January 2013

The recent string of high-profile High Street casualties have drawn focus on the issues consumers face in redeeming vouchers and gift cards when a retailer has gone into administration.

If an administrator decides to either try to save the business or find a buyer, then it becomes the administrator’s decision as to whether the company will accept any vouchers/gift card.

In the light of the current events it will be interesting to see whether legislation will be introduced to protect the consumer. This decision cannot be taken lightly because if legislation is introduced to ring-fence money for vouchers then it could prove even harder, than it currently is, for businesses to secure funding to save their businesses.

We think it will become vital though for any retailer wishing to sell vouchers/gift cards to find ways to reassure their customers that they will honour them. Otherwise – why would a cash strapped consumer take the risk?

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