Shame on You!

Where is Fox 5's Arnold Diaz when you need him?! Apparently he missed an opportunity to interrogate Fortunoff employees to find out why the bankrupt chain won’t accept gift cards. While the store has many locations throughout the Northeast and is the popular “go-to” store for many newlyweds and families, the store filed for bankruptcy protection two weeks ago and just laid off 300 workers. There is still hope for the chain to keep its doors open since its awaiting bids from potential buyers.

Recently, The Daily News reported that Vicki Georgiou, a newlywed, tried to use $1,500 worth of Fortunoff gift cards that she received as wedding gifts. She attempted to use the gift cards at the Westbury, L.I. flagship store but was given the runaround by employees that she could not use them at that time. "They said something about a court order but they wouldn't really explain it to me," she said. The article also stated that a Fortunoff employee told the media the company had "no comment" on the plight of Georgiou and other customers, and the company no longer has a public relations representative.

Customers are outraged at the company. Not only are they upset because they can’t use their gifts cards, but at the fact that the company is not communicating with them. "What bothers me the most is that there is no 'going out of business' sign on the store," Georgiou said, "So unless you know someone who works for Fortunoff, you never would have been aware of what's going on." A longtime customer who even has a Fortunoff credit card, Georgiou said she never received any notice that gift cards were no longer being honored. "I'm a valued customer," she said. "I just don't understand."

Another customer said the Fortunoff at Woodbridge Center in New Jersey also was turning away gift cards. Her parents couldn't use a $60 voucher she got them for Christmas. "Two or three managers came over and said, 'As of today, we're not honoring gift cards,'" said the woman, who gave her name as Colette, "They should have posted something.”

As I have mentioned in previous blogs, customers want to hear from companies and brands in the good times and the bad. Customers get angry and frustrated when they don’t. This is crucial especially when the customers have a credit card for that particular store and are a longtime valued customer. Customers usually have to give up valuable information when they sign up for the credit card, including an email address. Would it have been so hard for the chain to blast an email out to their customers explaining that they wouldn’t be able to use gifts cards until further notice? This seems like a simple task to keep customers at ease and informed as to what they can expect the next time they enter the store.

There is still hope for the chain to survive financially if potential buyers step up to the plate. But at the rate Fortunoff is going, customers are perturbed, likely to remember the bad experience and ultimately, shop at other stores in the future. Often times, your customers are your lifeline to survival.