RadioShack Gift Card Holders Should Have Voice in Bankruptcy Case
AUSTIN, July 14, 2015 - Texas Attorney General Ken Paxton released the following statement regarding the business formerly known as RadioShack’s motion to dismiss Texas’ case seeking to protect the interests of customers holding approximately $43 million in unredeemed gift cards with the company:
“RadioShack customers have the right to be provided notice of the bankruptcy case and should be given instructions to file a claim for their unredeemed gift cards,” Attorney General Paxton said. “We have asked the bankruptcy judge to determine that these consumers are entitled to have their claims for unredeemed gift cards treated as priority claims, and the state of Texas – along with the other states – should have the right to act on their behalf. Texas will continue to lead the fight to ensure the interests of consumers are protected throughout this case.”
To date, RadioShack has failed to give any notice of the claims process or notice of the filing of bankruptcy to holders or purchasers of unredeemed gift cards. In June, Texas filed the lawsuit to protect these consumers.
In May, a Texas-led coalition of 38 states announced a settlement with General Wireless – which obtained bankruptcy court approval to purchase RadioShack's entire e-commerce business, intellectual property and remaining assets – that limited the amount and type of consumer information available to the company. Under the terms of the settlement agreement reached after mediation, the overwhelming bulk of RadioShack’s consumer data will be destroyed, and no credit or debit card account numbers, social security numbers, dates of birth or even phone numbers will be transferred.