If you happen to be holding a Fortunoff gift card you may be out of luck. The bankrupt luxury goods store has stopped honoring all gift cards in advance of next week's auction of its assets. Bloomberg reports that Fortunof
f is working with creditors to find a way to keep accepting the cards but there is no news on when this might happen. Fortunoff is still facing a February 23 deadline
for the sale.Fortunoff has closed its Manhattan store and laid off 300 workers, although other stores remain open. Federal bankruptcy law allows companies to stop honoring gift cards after they file Chapter 11.
The NY Daily News
tells the story of newlywed Vicki Georgiou, who had received $3,000 worth of Fortunoff gift certificates at her recent wedding. She spent half the total on Monday but when she went back to spend the second half later in the week she found that she could not use the cards. There is a chance that Fortunoff may restore gift card use if it is bought by another company but for now consumers are in limbo.