Gift certificate program files Chapter 7 bankruptcy

A project to drive customers to shop at local businesses has gone belly-up.

The Danville Pittsylvania County Chamber of Commerce and chambers throughout the country discovered late last week that CertifiChecks Inc. has ceased operations, according to Laurie Moran, president of the local chamber.

The company administers gift certificate programs for chambers and other organizations as a way to drive business to a chamber’s membership.

“I was at a meeting with chamber executives, and someone mentioned that the company was seeking bankruptcy,” Moran said Tuesday.

Upon checking the company’s Web site, Moran learned that the company had stopped issuing certificates and was filing Chapter 7 bankruptcy in Dayton, Ohio.

“We had been with them for six years,” she said, “and they provided a wonderful service to support local businesses.”

Last year, more than $46,000 in gift certificates was purchased for use with chamber member businesses, Moran said.

“The gift certificates cashed just like a check,” she said. “It was a really easy program for customers and merchants. We had between 200 to 300 merchants who would use them.”

Any CertifiChecks gift certificates that have been deposited as checks by participating merchants will be returned by the company, according to information on the company’s Web site.

The chamber is asking all businesses that accepted CertifiChecks to immediately remove all door and register decals advertising they accept the gift certificates.

Businesses should not accept any CertifiChecks presented by customers either.

Customers who have certificates should bring them to the chamber office at 8563 U.S. 29 in Blairs.

“Right now, we are trying to figure out our options,” Moran said. “We are in legal counsel to see what we can do, and are going to work to get reimbursements. The most important thing is for people to bring their certificates to us.”

She said the chamber is just starting to hear back from businesses that purchased the certificates as holiday gifts and service awards.

“We don’t believe there are a huge number out in the community,” Moran said, “but we don’t want anyone to get hurt in a program designed to help the community.”

Contact the chamber offices at (434) 836-6990 for further information.