Bradlees Agrees To Honor Gift Certificates And Returns

HARTFORD (AP) — Bradlees Inc., which is seeking bankruptcy court protection, has agreed to honor gift certificates and merchandise returns, Connecticut Attorney General Richard Blumenthal said last  Friday.

The Braintree, Mass.-based retailer had said previously it would not accept holiday gift exchanges or redeem gift certificates that were purchased before it sought protection from creditors.

Blumenthal had asked the US Bankruptcy Court in New York to force Bradlees to change its position, but the retailer gave in before the court could act.

“Consumers should seize this opportunity since Bradlees is indeed going out of business,” Mr Blumenthal said.

Massachusetts Attorney General Thomas Reilly said Bradlees’ agreement doesn’t go far enough.

“It’s some relief,” Mr Reilly said. “It doesn’t answer all the questions, it doesn’t provide all the relief. But it’s a better situation than we were in two days ago.”

Meanwhile, Rocky Hill-based retailer Ames announced last week that it would accept exchanges and returns for store credit on items purchased at Bradlees. Ames said it has 67 stores located within 10 miles of a closing Bradlees location.

Both offers apply through January 15. The Ames offer applies to Bradlees’ items purchased within the last 30 days, and only to merchandise also carried by Ames.

Andrew Parker, a spokesman for Massachusetts Treasurer Shannon P. O’Brien, said honoring gift certificates through January 15 is not enough, and consumers deserve to be reimbursed past that date.

“Any gift certificate not redeemed is still considered consumer credit,” said Mr Parker.

Ms O’Brien’s office planned to file a petition in the bankruptcy court that would allow the state to reimburse consumers, Mr Parker said. Those petitions will not be accepted until February, he said.

Bradlees officials could not be reached for comment.

Bradlees confirmed last week that it will go out of business, putting nearly 10,000 people out of work. The company operates 105 stores and three distribution centers in Connecticut, Massachusetts, New Hampshire, Maine, New York, New Jersey, and Pennsylvania.

The company, founded in New London, Conn., in 1958, has agreed to sell its remaining inventory to Gordon Brothers Retail Partners LLC.

Bradlees officials expect to close all the stores within eight weeks.