Another Canadian retailer has fallen on hard times.
Saskatoon-based Spareparts, a retail chain selling sunglasses, jewelry and other accessories, filed for protection from its creditors in October.
Documents show the company has since gone into receivership, with accounting firm KPMG taking over control of its assets and operations.
One of KPMG’s first moves in the takeover has been to stop honouring gift cards.
“Gift cards will not be redeemed and accordingly gift card holders may be unsecured creditors of the company. Based on the information currently available to the Receiver, it is unlikely there will be any realization available for unsecured creditors,” KPMG wrote in a letter to gift card holders.
Signs posted at the chain’s Saskatoon location in Midtown Plaza indicate gift cards would not be redeemed or reimbursed effective Dec. 12.
The Spareparts store at Regina’s Cornwall Centre closed its doors completely as of Dec. 13.
At time of writing, representatives of KPMG and Spareparts had not responded to requests for comment.