Q: I just found out that the owner of Annie Sez stores filed for bankruptcy back in January. I have a credit card account with them. How does that affect me? Do I still need to keep paying?
A: These bankruptcies can take time to be sorted out but the most recent development I have read (from May 8, 2013) is that the owner, Big M Inc, will be sold to a Canadian company called YM Inc if the bankruptcy court approves.
Despite its name, the Annie Sez credit card is and always has been managed by a totally different company; Comenity Bank. They issue cards for dozens of stores and are certainly NOT in any danger of bankruptcy.
That means it will be business as usual for your credit card account with them. You can still login, pay online, and call customer service since that’s all handled by Comenity, not Annie Sez. So sorry to be the bearer of bad news, but you still owe the money and still need to continue payments as usual.
What’s the future for their stores?
This is a chapter 11 bankruptcy, which means the goal is re-organization of the company, it’s NOT to close it down.
If things go as planned the Annie Sez stores and brand will continue to be in business after the bankruptcy is finished. However there will be fewer stores, since they’ve already closed some of the least profitable locations.
What’s sad about the situation is that they’re actually a good place to buy women’s clothing. But last year’s Hurricane Sandy is what pushed the company into dire straits financially. If that didn’t happen, they might have avoided bankruptcy.
Should you keep their card or not?
Except for the 20% off coupon you get when you apply, their card was of very little use even before. And now with there being fewer stores, there are even fewer places to use it.
If you don’t have their card, don’t get one.
If you do have their card, you might want to keep it open just so you stay on their mailing list for promotions and sales. But aside from that, I would suggest getting a Visa or MasterCard from a major bank. Try out this sponsored tool and in as little as 60 seconds you can see which card(s) you pre-qualify for.
This article was written of last updated May 17, 2013