Customers ask why they can't use their Borders gift cards

PHOTO: The Straits Times

Since Borders suddenly closed its Wheelock Place store on Aug 16, it has come under fire because gift card holders have not been allowed to use their stored value gift cards.

Gift card holders like businessman Atish Mody, who has two gift cards worth $100 in total, are upset.

Unfortunately, in the eyes of the law, gift card holders are not comparable to cash-paying customers when a company is under judicial management, said Mr Tim Reid of the recovery firm Ferrier Hodgson.

Mr Reid explained that once a company is placed under judicial management, gift card holders are considered creditors.