NH AG, Others Reach Deal with RadioShack

Consumers with RadioShack gift cards that they haven’t redeemed will get a full refund ccording to a press statement on Oct. 5 2015, from NH Attorney General Joseph A. Foster.

According to Foster, the Delaware Bankruptcy Court approved a plan of reorganization that incorporates a settlement with the former electronics retailer that will allow consumers to obtain a refund for the full value of unredeemed gift cards purchased from RadioShack or other merchants who sold RadioShack Gift Cards.

The settlement applies to consumers nationwide and does not impose a minimum dollar threshold for consumer claims.

Under the approved settlement, New Hampshire consumers have 12 months after RadioShack’s plan of liquidation becomes effective to file a simplified Proof of Claim form that will be available online or by mail if they prefer.

The website for filing claims is: oldradioshackgiftcard.com.

Card purchasers whose email or postal addresses are part of RadioShack’s records will receive notices by email or postcard with instruction on how to file a claim. In addition, an online ad campaign will notify consumers of the claims process.

A $500,000 escrow account will be established so that the first half million dollars’ worth of priority unredeemed gift card claims will be paid promptly and will not be delayed in the bankruptcy process.

In the event that priority gift card claims exceed that amount, additional funds will be provided by RadioShack.

To constitute a priority gift card claim, the unredeemed gift card must have been paid for by a consumer. Claims involving gift cards that were issued as promotional giveaways by the company (and not paid for) and merchandise and store credit cards will be treated as general unsecured claims under applicable bankruptcy law. Those consumers are less likely to get full refunds.

A supplemental agreement has also been reached in which all holders of unredeemed RadioShack gift cards would have the option to redeem their cards at RadioShack stores run by General Wireless, which bought 1,750 stores out of the bankruptcy. General Wireless will honor old RadioShack gift cards when used to purchase private label merchandise at its RadioShack stores but only to the extent of 50% of the purchase price of such private label merchandise (i.e., a $20 gift card could be redeemed in full if the customer purchases $40 or more in private label merchandise; if a customer purchases $20 in private label merchandise, $10 of the gift card could be redeemed).

In addition to the information on the website, oldradioshackgiftcard.com, New Hampshire consumers with questions about this settlement can call the Attorney General’s Consumer Information Line at 1-888-468-4454.