Giftcardrescue.com folds

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Giftcard Rescue sent an email out to the people they lied to and stole giftcards from, saying they are now closed, and we are out of luck. If your waiting on a supposed payment, forget about it. They lied to me numerous times about sending a check, and it getting lost in the mail at least 3 times.

It was only a $31 lesson for me, for giftcards I could not use or sell elsewhere

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"Buying and Selling of Gift Cards on GiftCardRescue.com is temporarily not available. We will provide an update soon. We apologize for the inconvenience."

Nice website update.  And to think this was an early Shark Tank success story.

And 100% guaranteed...

Connman said:   And 100% guaranteed*

* Not a guarantee

Says that it is working on my side.
And to think this was a Shark Tank Success Story

Actually it wasn't

What seemed like a fantastic deal for both Robert Herjevic and Kevin O'Leary buying half this company for only $200k was indeed too good to be true. Between the taping of Kwami making an impressive appearance on the show, and when it actually aired, many things in the valuation and the deal was never completed.  

I sent 400 worth GC's to get 350 in cash, They mailed the check and I never got and latter I contacted second time I got check second time. It seem to be fraud to me too.

rocketininja said:   I sent 400 worth GC's to get 350 in cash, They mailed the check and I never got and latter I contacted second time I got check second time. It seem to be fraud to me too.the closest I can guess you said is that you got the check after contacting them to say you never got the first check. That would be better than not getting it at all, right?

Here is the entire letter................

To our Customers:

You are receiving this letter because you sold gift cards to GiftCardRescue.com recently and are awaiting payments on those gift cards.

Unfortunately, I regret to inform you that GiftCardRescue.com has closed down effective July 15, 2016. Our company was forced to shut down last week when a lender to the company (with whom we have been trying to negotiate a temporary forbearance) went to court and got a judgment against our company. With that judgment, they placed a hold on our business bank account, depleting all the funds in our account. Without access to our operating account, we had no choice but to shut down.

I sincerely regret this outcome and any possible impact to you. As one of the pioneers of the secondary gift card industry, it breaks my heart to see a business I have worked so tirelessly to build over the last 8 years come to a sudden end, with payments owed to customers like you.

While our business has experienced rapid growth over the last year, our effort to secure additional capital to finance the growth has been a challenge, resulting in reduced margins and losses. Since November 2015, we have been working with an investment banking firm to find a strategic partner/buyer for the company but those efforts ended in June 2016 without success. We were in the process of exploring other options to salvage value from the business before this action from our creditor brought everything to a halt and forced our closure.

I am sure you are wondering what will happen to the debt owed to you by GiftCardRescue.com. While I have pursued all efforts to find a way to pay the amounts owed to you, or to have another company in the secondary gift card industry assume and pay the obligations owed to you as part of a transaction, at this point my efforts have not been successful. If this circumstance changes, you will receive further communications to ensure you are properly advised.

I know this answer will not be of any comfort to you and I am very sorry for that. I never expected to be in this situation. I would like to thank you for trusting us with your business and regret that we were not able to send you payment for the cards you sold to us.

If you have any questions, please send your communications to GiftCardRescue.com at the address below.

Sincerely,

Giftcardrescue.com, LLC

By:
Kwame Kuadey,
CEO & Founder

GiftCardRescue.com, P.O Box 6244, Ellicott City, MD 21042

LORENW said:   Here is the entire letter................

To our Customers:

You are receiving this letter because you sold gift cards to GiftCardRescue.com recently and are awaiting payments on those gift cards.

Unfortunately, I regret to inform you that GiftCardRescue.com has closed down effective July 15, 2016. Our company was forced to shut down last week when a lender to the company (with whom we have been trying to negotiate a temporary forbearance) went to court and got a judgment against our company. With that judgment, they placed a hold on our business bank account, depleting all the funds in our account. Without access to our operating account, we had no choice but to shut down.

I sincerely regret this outcome and any possible impact to you. As one of the pioneers of the secondary gift card industry, it breaks my heart to see a business I have worked so tirelessly to build over the last 8 years come to a sudden end, with payments owed to customers like you.

While our business has experienced rapid growth over the last year, our effort to secure additional capital to finance the growth has been a challenge, resulting in reduced margins and losses. Since November 2015, we have been working with an investment banking firm to find a strategic partner/buyer for the company but those efforts ended in June 2016 without success. We were in the process of exploring other options to salvage value from the business before this action from our creditor brought everything to a halt and forced our closure.

I am sure you are wondering what will happen to the debt owed to you by GiftCardRescue.com. While I have pursued all efforts to find a way to pay the amounts owed to you, or to have another company in the secondary gift card industry assume and pay the obligations owed to you as part of a transaction, at this point my efforts have not been successful. If this circumstance changes, you will receive further communications to ensure you are properly advised.

I know this answer will not be of any comfort to you and I am very sorry for that. I never expected to be in this situation. I would like to thank you for trusting us with your business and regret that we were not able to send you payment for the cards you sold to us.

If you have any questions, please send your communications to GiftCardRescue.com at the address below.

Sincerely,

Giftcardrescue.com, LLC

By:
Kwame Kuadey,
CEO & Founder

GiftCardRescue.com, P.O Box 6244, Ellicott City, MD 21042

  PS,
I will be enjoying spending all the GCs that you suckers sent me!

While I don't know what the problem is or was here, the trouble with this business model of reselling gift cards online is that there is just way too much fraud from people selling stolen gift cards. I've stopped buying from these websites because I've been burned way too many times. Granted, I've always gotten refunds in those cases, but that isn't how any business model should work on a regular basis and it just seems very unsustainable.

LORENW said:   By:
Kwame Kuadey,
CEO & Founder
Nigerian Prince

  Now we know the truth!!!

They may be using gift cards that they received to pay for the previous transactions. Ponzi scheme?

Wow lesson learned. I'll just hold on to mine for now.

Their Facebook page is still loud and proud.

Their buying website is still working, the selling portion is down though.

July 22, 2016

To our Customers:

It is with great sadness that I am informing you that GiftCardRescue.com has closed and ceased doing business.

The company I founded eight years ago and have worked tirelessly to build into a multi-million dollar business was forced to shut down on July 15th after one of our lenders froze our bank account. This happened without any warning.

In these circumstances, all we can do is to wind down our affairs, including letting our customers and others with whom we did business know of our closing. Gift cards that were purchased before July 15th have all been shipped to buyers. Gift cards received in the mail within the last two weeks from sellers that were yet to be processed are being returned to senders. If you have a pending payment or are awaiting a refund, you will receive a separate communication.

I sincerely regret this outcome and any possible impact to you. I would like to thank all our loyal customers over the years, some of whom have been buying discounted gift cards from us since we started in 2008. It was a pleasure to have you all as customers.

If you would like to send any communication to GiftCardRescue.com, please send it to the address below.

GiftCardRescue.com, P.O.Box 6244, Ellicott City, MD 21042

Sincerely,

GiftCardRescue.com

By: Kwame Kuadey,
CEO & Founder

ablang said:   blah blah...

By: Kwame Kuadey,
CEO & Founder

  I suspect you didn't look up this thread to where this was already posted

edit : slightly different letter.

forbin4040 said:   
ablang said:   blah blah...

By: Kwame Kuadey,
CEO & Founder

  I suspect you didn't look up this thread to where this was already posted

I suspect that you didn't read the post (letter) before replying.  It looks like a different letter to me.  

Yup your right

Nice July 22 letter

It says people who sent cards to them in the last 2 weeks will have them returned

How about people who sent them in April and were told the Checks In The Mail, not once, not twice , but 3 times the check was lost in the mail? I guess I will get a different letter, so it can be lost yet a forth time in the mail.........

I got some cards back today in the mail that I mailed 2 months ago.



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