A company entering administration does not automatically cancel every gift card. It also does not guarantee that old cards will keep being honoured.
The practical problem is timing. The business may continue trading while administrators decide what to do with pre-appointment customer obligations, and a later buyer may choose which liabilities it takes on.
Are gift cards automatically void?
No. The ACCC says an insolvent retailer that keeps trading may continue to honour gift cards or lay-bys, sometimes subject to new conditions. But if the company cannot honour the card, the holder may end up as an unsecured creditor for the unused value.
That means the answer depends on the administrator's or liquidator's policy and on what happens to the business.
What should you do immediately?
Keep the physical card or digital code.
Save the purchase receipt or confirmation email.
Take a screenshot of the balance if the website still shows it.
Save any terms and conditions that applied when the card was bought.
Check the administrator's or receiver's customer notices before spending more money.
Why an open store is not enough
A retailer can keep trading during voluntary administration or receivership. That tells you the business is operating; it does not necessarily tell you how pre-appointment gift cards are being treated.
The Cue and Veronika Maine administration illustrated the problem. The stores were still trading while both gift-card product pages were unavailable, and no public customer policy had yet resolved what would happen to existing cards. A separate promotion page was still referring to gift-card purchases.
What if the business is sold?
A sale of the operating business does not automatically mean the buyer assumes every liability of the old company. The treatment of gift cards can depend on the sale terms and any customer policy announced by the new owner or insolvency practitioner.
So “the brand has been sold” and “my old gift card is valid” are different questions.
What if the card is not honoured?
You may have a claim against the legal company that issued the card. Keep evidence of the amount and the entity involved. If you paid for the gift card by credit or debit card, check promptly whether your bank's chargeback process is available and whether time limits apply.
The Open Register's creditor guide explains the broader position for people owed money by a company in administration or liquidation.
Check the legal company, not just the brand
Large retail brands can operate through more than one company. The legal entity on the receipt or terms is the starting point for any claim. Search the ACN or ABN rather than relying only on the shop name.
Official guidance
The ACCC publishes consumer guidance on what can happen when a business becomes insolvent. ASIC's insolvency guides explain the role of administrators and liquidators.
General information only. Gift-card treatment can change during an administration, sale or liquidation, so check the latest practitioner notice before acting.
