Baby City's Liquidation Wipes Out $300k in Gift Cards and Loyalty Points

Baby City, a baby product retailer, has gone into liquidation after its sole shareholder kept the company afloat for years. Over $300,000 worth of gift cards and loyalty points are now worthless. Four of the seven stores continue to trade under a new owner, but the liquidation means that customers cannot use their gift cards or loyalty points.

Baby City, a well-known baby product retailer based in New Zealand, has recently entered into liquidation, leaving customers in a predicament. The company's sole shareholder, Campbell Gower, had kept the business afloat for years, but unfortunately, the financial strain proved to be insurmountable [1]. As a result, five of the seven stores have been transferred to new management, while the remaining four continue to trade under the new ownership.

The liquidation process has rendered over $300,000 worth of gift cards and loyalty points useless. Customers who had accumulated these rewards over time are now left to contemplate their next steps. The sudden loss of these benefits has left a sour taste in the mouths of many, who had expected to continue reaping the rewards of their loyalty.

The reasons behind Baby City's liquidation are not entirely clear, but the retail industry has been hit hard by the pandemic. In 2023, several well-known retailers, such as Bed, Bath and Beyond, and Buybuy Baby, closed their doors due to financial difficulties [3]. Even in 2024, retail giants like Family Dollar and Walgreens saw hundreds of closures. The ripple effects of these closures have been felt far and wide, leaving many to wonder which retailers might be next.

As for Baby City customers, they are advised to reach out to the company's insolvency specialists, Iain Shephard and Jessica Kellow of BDO Wellington, for further information regarding the liquidation process and any potential compensation [1]. In the meantime, customers are encouraged to explore alternative ways to save money, such as the Discover Cashback Debit Checking account, which offers 1% cash back on up to $3,000 in debit card purchases each month [2].

References:

[1] "Baby City Retail Owner Goes Into Liquidation, Five Stores Under New Management." NZ Herald, 31 Dec. 2024, https://www.nzherald.co.nz/business/companies/retail/baby-city-retail-owner-goes-into-liquidation-five-stores-under-new-management/MVCKCCQ6GFCNLFCIIRNC2VFEWM/

[2] "Discover®️ Cashback Debit Checking Account." FinanceBuzz, https://financebuzz.com/discover-cashback-debit-checking-account/

[3] "Stores That Could Close in 2025." FinanceBuzz, 3 Jan. 2025, https://financebuzz.com/stores-that-could-close-in-2025/