Connecticut Attorney General's Office

Press Release

Attorney General Announces Proposed Deal To Honor At Least Half Of Gift Card Value

January 12, 2010

Attorney General Richard Blumenthal announced today that the bankrupt Ski Market Ltd., Inc. has preliminarily agreed to honor at least 50 percent of the value of unused gift cards, despite its initial public statements that it would not honor the cards at all.

Ski Market, after filing for Chapter 11 bankruptcy on Dec. 29, 2009, has been rejecting unused gift cards.

Blumenthal said, "This action is a positive first step, but not the last in our battle on behalf of consumers with unused Ski Market gift cards. We urge that consumers take advantage of it as soon as possible, assuming the bankruptcy court approves it."

Blumenthal filed a motion with the U.S. Bankruptcy Court last week seeking to compel Ski Market to honor approximately $200,000 worth, and possibly more, of gift cards that remain unused by consumers.

After rejecting gift cards entirely, the company has now preliminarily agreed to recognize at least half of the value of consumer gift cards.

"Ski Market has agreed to give loyal consumers a lift -- heeding our call and recognizing that consumer trust is imperative to Ski Market's future success," Blumenthal said. "This preliminary agreement is a partial victory, and my office plans to continue working to assist consumers seeking additional reimbursements.

"I am pleased that Ski Market has agreed that its financial avalanche should not bury its promises to consumers. We urgently warned Ski Market that it would doom itself by denying gift cards -- destroying consumer confidence and deterring new buyers for the company assets. Ski Market is rightfully realizing its responsibilities to consumers. My office will continue to monitor this bankruptcy proceeding and fight for further consumer protections."

Under the proposed deal, which must be approved by the bankruptcy court, consumers would be able to use their cards up to 50 percent of their value at any Ski Market store, including the store in Avon, from Jan. 16 through 24.