New York City Fortunoff Holdings has stopped accepting gift cards as it prepares to auction its assets next week, according to a Bloomberg report.
The company is working with creditors to find a way to resume accepting the cards, according to a company spokeswoman.
Fortunoff sought protection from creditors on Feb. 5 and said last week it would sell its assets on Feb. 23. Purchase, N.Y.-based NRDC purchased it last March out of an earlier bankruptcy for $110 million, including $80 million in cash.
The retailer intended to stop accepting gift cards as of Feb. 5 but a “miscommunication” with stores led to gift cards being honored until the policy was enforced on Feb. 17, the company said.