States Intervene In Electronics Retailer Bankruptcy

Attorney General Spitzer today announced that his office has successfully intervened in the bankruptcy case of the company that owns and operates the "The Wiz" and "Nobody Beats The Wiz" to protect consumers holding gift certificates, store credits, and returnable merchandise. The retail electronic store debtor operates 17 stores and one distribution center in the tri-state area.

"This case demonstrates the growing need for additional protections for consumers during bankruptcies of retailers," Spitzer said. "My office will continue to closely monitor bankruptcy filings to ensure that retailers and liquidators provide adequate protections for customers."

Spitzer said that his office, joined by the attorneys general of New Jersey and Connecticut, intervened in the bankruptcy of TW, Inc., formerly known as Cablevision Electronics Investments, Inc., to ensure that consumers holding Wiz gift certificates can continue to use them. On Thursday, United States Bankruptcy Judge Mary Walrath approved going out of business sales guidelines negotiated with the company by Spitzer's office that permit consumers to use their gift certificates throughout the "The Wiz's" going out of business sale. The sale is currently anticipated to end on April 30th.

It is estimated that "The Wiz" has $4.5 million worth of outstanding gift certificates. Without the intervention of the attorneys general, these gift certificates would not have been honored by "The Wiz" during its going out of business sale.

As a result of the court's order, "The Wiz" also will accept through the close of business on April 7th returns of merchandise purchased before March 8th, as well as store credits issued before March 8th. Prior to the involvement of the attorneys general, these programs were scheduled to expire on March 28th.

The attorneys general also obtained important privacy protections for customers and employees of "The Wiz." As a result of the order signed Thursday, the company cannot sell or abandon any computer or cash register unless all personal information of customers and employees has been deleted from the equipment.

Spitzer noted that his office has recently intervened on behalf of consumers in a number of bankruptcy cases, including Quality Stores, a giant agricultural retailer, K-Mart, Ames, ToySmart and the Museum Company.

Consumers with questions about their rights during a bankruptcy are encouraged to contact the Attorney General's consumer help line at (800) 771-7755.

This case is being handled by Assistant Attorneys General Leslie B. Neustadt of the Consumer Frauds and Protection Bureau and Nancy Hershey Lord of the Civil Recoveries Bureau.