HI All,
Curious if people have an idea if Kogan would honour DS gift cards now that it has bought DS online business. I could not get my DS gift card exchanged for Coles/Woolies as I received it as warranty payout. I wonder if others might be in similar situation.
Thanks
The brand is worth whatever someone is willing to pay and the administrators of DS are trying to claw back as much money as possible to pay back creditors.
DS will not honour gift cards and Kogan isn't going to lose money because of DS's failed business. The gift cards are now expensive plastic.
That's not honouring gift cards. It's giving some store credit (not to the value of the voucher).
It also means that you're passing the collective unsecured credit to Kogan, which may be something they're wanting to hoard (note that they're making you post the physical card to them before they'll email you a credit). I'm quite sure they'd have avenue to write this unsecured credit down as a loss which could save them at tax time.
Either way, my comment above stands. Kogan are absolutely not honouring DS gift cards, nor are they losing money (in fact given the value of most of the DS vouchers that people could be bothered posting to them will be >$25 in credit they could actually be making money from this). And to boot they get to look like the "good guys".
It appears they are apportioning a value to the giftcards.
@the-mal:
Kogan will be paid as an unsecured creditor for the gift cards.
If he gets paid out 20c on the dollar, he'll come close to breaking even on the gift card, and he gained a high margin sale he would never have gotten without the gift card.
This was a sly move by kogan, and in no way was he trying to help.
Zero chance. The corporate entity that has your money for those gift cards is winding up.
Why would Kogan honour gift cards for money you paid to someone else?
ask kogan. only they can give you the answer. try tweeting ruslan
da
Would you be expected to honour a DS gift card if your purchased a Dick Smith shop ?
Besides Kogan had already offered $25 on Dick Smith cards. Dick Smith $25 Gift Card Swap with Kogan
Would you?
Dick Smith Powered by Kogan would be a totally different business entity to the previous business we knew simply as Dick Smith. In short, Kogan would, in all likelihood, not accept any of the previous business' gift cards.
Probably no legal obligation, I'm sure Kogan only brought the brand minus the company and it's debts, but I'm sure Kogan will probably offer goodwill store credits (i.e. $20) to try and buy from goodwill from existing dissatisfied ex-DS customers early on when they start trading as Dick Smith.
Reply from Kogan:
Hi Varun,
Thank you for contacting Kogan.com.
Holders of Dick Smith gift cards should contact the Receivers in respect of any entitlement of remaining credit on the cards.
We know it sucks to be out of pocket, which is why we want to help Dick Smith customers by offering them a Gift Card/Voucher Swap!
Simply follow the instructions here, post your Dick Smith Gift Card/Voucher to us, and we'll email you $25 of Kogan.com credit to use on anything at Kogan.com. T&Cs apply.
Alternatively, holders of Dick Smith gift cards may be entitled to claim a refund from the retailer at which they purchased the gift card (for instance a supermarket), or they may also be able to process a charge-back through their credit card providers if they paid by credit card.
Terms and Conditions:
Limit of one voucher per customer, and we must receive your original Dick Smith Gift Card / Voucher by June 1st 2016 with outstanding credit on it and valid at least until the day we receive it, in order to be eligible. Please note you will not receive your Dick Smith Gift Card / Voucher back under any circumstances.
There's the kicker. You're passing on your unsecured debt (likely to the total of more than 25 Kogan bucks) to Kogan.
Can they then write this off as a tax deduction via "bad debt"? I'm no tax expert, but I'd wager they can. So given that Kogan only give you store credit (which is spent on their retail price, not their cost price…meaning they're not "giving" you $25) and that the vouchers people would send in will likely have much more than $25 on them this could actually be a money earning exercise for Kogan. And they get positive press as well. Double whammy.
Yeah. I had $460 on my DS card , I would rather let that go the drain then have to buy from Kogan.
I doubt it, unless it gives him a discount in the purchase price of the brand.