State Persuades Bankrupt Tweeter to Honor Customer Gift Certificates

Bankruptcy Court did not require Tweeter to honor consumer deposits

BALTIMORE (Nov. 17, 2008)- Attorney General Douglas F. Gansler announced today that the bankrupt Tweeter electronics chain has agreed to honor customer gift certificates throughout the duration of its store closing sales. This agreement was reached after the Attorney General’s Consumer Protection Division filed an objection to Tweeter’s proposal to cut off gift certificates after November 15th.

Tweeter, which has seven Maryland stores, filed Chapter 11 bankruptcy in Delaware on November 5, 2008. The Attorney General’s Office, which was joined by the Attorneys General of Connecticut and Illinois and the Georgia Governor’s Office of Consumer Protection, filed an objection to Tweeter’s proposal to honor gift certificates only through November 15th and sought to require Tweeter to honor deposits made by consumers who ordered merchandise prior to the bankruptcy filing. Tweeter agreed to honor gift certificates through the duration of its store closing sales.

“I’m pleased that we were able to ensure that consumers with gift certificates will be able to use them,” Gansler said. Attorney General Gansler urges consumers holding Tweeter gift cards and certificates to make sure they use them before the stores close, which is likely to be by the end of the year.

The Bankruptcy Court, however, did not require Tweeter to honor consumer deposits during the sale. Attorney General Gansler said he encourages consumers who made deposits for merchandise they have not received to contact their credit card company to reverse the charges or, if they paid by another method or are otherwise unable to reverse the charges, to file a claim with the Delaware Bankruptcy Court. Consumer deposits up to $2,425 have a priority over other general unsecured claims in bankruptcy. Proof of claim forms and instructions are available on the Court’s website,, or may be obtained by contacting the clerk’s office at 302-252-2887.

Source: Attorney General Douglas F. Gansler

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