Got an Iron Hill gift card still? Here’s what will happen after the bankruptcy filing

Iron Hill Brewery & Restaurant’s abrupt closing of all locations leaves gift card holders mostly out of luck.

Iron Hill announced on Sept. 25 at 9:45 a.m. that it was closing all 16 of its locations and also filing for bankruptcy. This comes just two weeks after three locations in Newark, Pennsylvania and New Jersey were suddenly closed on Sept. 10.

As employees and customers scramble in the aftermath, many may wonder what will happen to their gift cards.

“I feel for all the people who just won $500 gift cards in the Oktoberfest promo, what a rug pull!” one Reddit user commented on a post about Iron Hill’s closure.

Iron Hill representatives have not responded to questions from Delaware Online/The News Journal about the news or what will happen to gift cards.

Referring to similar situations in the past, the issue of customer gift cards during a bankruptcy filing pertains to “a very complex area of law,” said Mat Marshall, spokesperson for the Office of the Attorney General in the Delaware Department of Justice.

“People with gift cards are considered creditors for the purposes of the bankruptcy process and can file proof of claim to try and receive a refund out of the company’s assets.”

While a pathway to file a claim is available, gift cards are considered unsecured debt, which places cardholders as the lowest priority among the company’s list of creditors. Those with gift cards are unlikely to receive a full refund, if they are reimbursed at all.

Got a tip or a story idea? Contact Krys’tal Griffin at kgriffin@delawareonline.com.

This article originally appeared on Delaware News Journal: Got an Iron Hill gift card still? Here’s what will happen after the bankruptcy filing

Reporting by Krys’tal Griffin, Delaware News Journal / Delaware News Journal

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