Sears Warranties And Loyalty Points Could Be Dissolved In Light Of Bankruptcy

Sears, a longtime top seller of home appliances in the U.S., sold countless warranties. But now that the retail store is filing Chapter 11 bankruptcy and closing another 140 stores, longtime customers remain nervous as they wonder about warranties for all the appliances they bought, as well as Shop Your Way reward points and gift cards.

But Sears says it will honor its warranties.

“We are a leader in the service contracts industry and proudly stand behind our product,” a Sears spokesman told Business Insider last year. “Sears, as well as any other company that legally sells service contracts, is required to meet regulatory requirements designed to provide adequate resources to fulfill service contracts into the future. We will fulfill our commitment to our customers and members.”

However, that’s not what bankruptcy lawyer Corali Lopez-Castro is saying. Lopez-Castro said that there’s a possibility warranties would be dissolved in the event of a Sears bankruptcy.

“The warranties are going to be a huge issue,” Lopez-Castro, a partner at the Florida-based law firm Kozyak Tropin & Throckmorton, told Business Insider. “There’s a real risk that they will not be honored.”

Gift cards and rewards points earned through Sears’ Shop Your Way loyalty program could also be erased.

“I would advise customers to redeem their points now,” Lopez-Castro added.

By: Maytinee Kramer

In a new move for public schools, Florida lawmakers want to make sure high school...
Singer Rihanna has filed a lawsuit against her father, Ronald Fenty, over the...
The first teaser trailer for “Spider-Man: Far From Home” has officially swung...
The coffee chain has finally arrived in Italy! Starbucks opened its first store in...
That yummy Chipotle burrito you like to get for lunch may bump up in price later...
CBS All Access recently announced its plans to add another Star Trek series to its...
If you’re an avid fan of Disney and love Disney Style, then you’re sure going...
Doughnut and chocolate lovers, get ready because two of your favorite items have...
In a very nontraditional way, President Donald Trump treated the Clemson...
Merlin Entertainments has announced that a new Legoland Korea park would be coming...
Harry Styles split from his model love Camille Rowe last summer after one year of...
Although it’s sad news, fans finally know when the beginning of the end for...