As of 2015, it is no longer possible to redeem Borders gift cards, as reported by Consumerist. In October 2015, the U.S. Supreme Court declined to hear a lawsuit filed by Borders gift card customers who lost the value of their cards following the company’s 2011 bankruptcy.
According to the Los Angeles Times, when Borders closed its stores, clients were left with around 17.7 million unused gift cards worth $210.5 million. According to the company’s liquidation plan, gift card holders had until June 1, 2011 to register a claim in the bankruptcy, however no claims were lodged. Attorneys for the cardholders stated that Borders did not market this way of recovering card value effectively.
As reported by Consumerist, several cardholders filed a lawsuit saying that they should be entitled to make late claims. However, the bankruptcy court denied the lawsuit. The case reached the U.S. Supreme Court, which declined to consider it in October 2015, putting a stop to its appeal.
Giftcards.com states that consumers holding gift cards are susceptible to financial losses when a company files bankruptcy. Occasionally, companies claim that gift cards are invalid even when their actual storefronts remain open. Giftcards.com maintains the Chapter 11 Gift Card Watch List to help users safeguard their investments.