Daily News: August 27, 2015

WSJ: RadioShack to Refund Gift Cards

The Wall Street Journal reported that RadioShack lawyers have outlined a settlement of a lawsuit regarding approximately $40 million of unredeemed gift cards, many of which are likely to be repaid in full.

The Journal reported that during a hearing, attorney for the former RadioShack, Gregory Gordon, told Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, DE, that the settlement was fair and fully resolved a lawsuit over the unredeemed gift cards.

The Journal said Texas’ attorney general and many other states had asked Judge Shannon to rule that they have the right to administer gift-card claims on their residents’ behalf.

The Journal said Texas has also requested that gift-card claims would be paid ahead of many other creditors in the bankruptcy proceeding.

In ABF Journal’s May/June issue, Tiger Capital’s Michael McGrail wrote about the benefits of accepting gift cards during a liquidation.

Access the full Wall Street Journal report here.