Connecticut Attorney General's Office

Press Release

Attorney General Warns That Nearly $400,000 In Blue Tulip Gift Cards May Soon Be Worthless

January 9, 2009

Attorney General Richard Blumenthal today warned that Blue Tulip stores -- including five in Connecticut -- will close by the end of the month, soon rendering worthless any merchandise credit, gift cards and deposits.

Blumenthal urged consumers to immediately resolve any outstanding deposits and orders on customized goods and to redeem gift cards and other store credit.

"This Blue Tulip bankruptcy is about to wilt hundreds of thousands of dollars worth of gift cards and consumer deposits," Blumenthal said. "Nearly $400,000 worth of gift cards will soon be worthless plastic, and deposits are in danger of vanishing if consumers fail to act now.

"This bankruptcy -- and countless others -- is a sobering reminder to all gift card holders: Use it or lose it. In the state of our economy, time is money. No matter how sound the retailer, consumers must use gift cards promptly. Don't delay on outstanding deposits and cash in your credit."

The Tulip Corporation, a retailer of gifts and entertainment products, including personalized items, filed for Chapter 11 Bankruptcy this week and will close all of its 24 stores -- including five in Connecticut -- by Jan. 31.

The bankrupt Blue Tulip has only agreed to honor gift cards, deposits and promotional gift cards through close of business on Jan. 31. Merchandise credits will be honored through Jan. 15.

Blue Tulip's merchandise credits, unredeemed gift cards, deposits and promotional gift cards, estimated at $388,000, may soon be worthless. The company also holds approximately $4,000 in deposits for customized goods. Consumers have only until the end of the month to pay the outstanding balance and claim their items.

The Tulip Corporation operates under the label of Blue Tulip, and has stores in Canton, Milford, Fairfield, Darien and Wilton. Blumenthal said the company has indicated that consumers whose goods have not been customized will receive a full refund of the deposit.