Bankrupt Bernie’s Disposition Of Gift Cards, Deposits Approved

HARTFORD — Attorney General Richard Blumenthal announced that the US Bankruptcy Court approved a plan January 15 allowing Bernie’s Audio Video TV Appliance Co., Inc to honor all consumer deposits and gift cards.

Mr Blumenthal’s office appeared in court to support the measure and monitor the bankruptcy proceeding to ensure that consumers are fully protected. The court action means that consumers will have an opportunity to redeem a total of as much as $200,000 worth of unused gift cards before Bernie’s liquidates its assets.

Bernie’s filed for Chapter 11 bankruptcy on January 14, and plans to close all 15 stores, including nine in Connecticut. All stores are expected to close by February 28, 2010, at the latest.

“We are sad to lose a longtime Connecticut establishment — but commend Bernie’s for its integrity and respect for consumers,” Mr Blumenthal said. “Consumers will rightfully receive full value on their Bernie’s gift cards during the liquidation sale, and outstanding deposits will be honored with merchandise or full refund. Consumers should immediately redeem cards and credit while they have this opportunity.”