[Southsider2k12]

Just had lunch at Damon's today. Apparently the Damon's chain is bankrupt and going into liquidation. The City location is in the process of changing over to a place called "Crawfords".

[taxthedeer]

http://www.cleveland.com/consumeraffairs/i...s_point_ou.html

Hopefully nobody has any leftover Damon's gift cards.

Damon's Grill closures point out the risks of gift cards
Published: Saturday, October 29, 2011, 11:00 AM Updated: Monday, October 31, 2011, 2:50 PM
By Sheryl Harris, The Plain Dealer
Associated Press
When Damon's Grill closed the last of its Ohio restaurants after a long slog through bankruptcy court, Bob McGuire of Middleburg Heights was one of many customers stuck with unused gift cards.
"I'd rather eat ribs than these cards," he said.
Gift cards are packaged for convenience, but they pose risks for consumers – an important point as we head into prime gift-card buying season.
Unbeknownst to consumers, stores can continue to sell gift cards even after they file for bankruptcy, as Damon's did.
And bargain shoppers beware. Long after Damon's shut the last of its chain-owned stores, resale sites that let consumers dump unused cards were still merrily hawking Damon's Grill gift cards.
The Tower Group, a financial services research firm, estimates that consumers lost about $2.5 billion in gift cards in 2010 – losses Tower attributes to forgotten cards, user fees and store closures.
Consumers' losses have been halved thanks to new restrictions on gift card fees that went into effect in August 2010 as part of the Credit CARD Act. But that's still a lot of birthday and anniversary money that goes to waste and – for the companies that issue cards – a boatload of free cash.
The best advice on gift cards is this: If you get one, use it fast.
The longer you hold a card without using it, the greater the risk it will lose its value.
The plight of Damon's gift card holders is a case in point.
The Columbus-headquartered Damon's Grill chain filed for bankruptcy reorganization in Pittsburgh in 2009. But customer Ted Zucco, who lives in Parma, said he had no idea the chain faced financial problems until he went to the Rockside Road restaurant earlier this month and found it closed.
He has three $50 Damon's gift cards, all purchased this year.
Damon's bankruptcy attorney did not return repeated calls and emails about gift-card holders.
Consumers Union has lobbied the Federal Trade Commission to do more to protect gift-card consumers when stores close. Among other things, the group wants the FTC to bar stores from continuing to sell gift cards once they file for bankruptcy as well as to prohibit third-party vendors from selling gift cards from stores that are trying to shed debts in bankruptcy. They also urged the agency to create a registry of businesses who have filed for bankruptcy so that consumers have an easier way to gauge the risk of a gift-card purchase.
When a store that issued a gift card files for bankruptcy, said Cleveland bankruptcy attorney Matt Barrett of Nemeth Barrett, it's not always clear to the customer who has his cash.
If the customer bought the gift card directly from the restaurant, he's stuck going to bankruptcy court and waiting in line behind other creditors.
Damon's struggled in Chapter 11 bankruptcy reorganization for almost two years.
Consumers may want to hold onto the cards to see if Damon's will emerge from the Chapter 11 and accept the cards. If the case converts to a Chapter 7 liquidation, consumers may be notified by the court to file a claim.
If consumers' gift cards were purchased through third-party vendors, like grocers and discount and drug stores, Barrett said, consumers may be able to recoup their loss by contacting the store that sold the card.
It may be willing to swap out the card on its own or provide contact information for a middleman company, if one was involved. Sometimes these middlemen manage card balances.
It's not a sure bet.
Barrett points out that the contracts between the business parties – contracts consumers aren't privy to -- may dictate who's liable to customers for losses. For example, he said, customers may be stuck back at bankruptcy court if the closed restaurant chain immediately got proceeds from third-party sales, as opposed to being paid when consumers made purchases with the cards.
The Tower Group, which will release a new report on gift cards next month, has predicted that after a lull in sales, gift cards will come roaring back this year.
The cards are convenient for buyers, if not always for recipients.
There are two types of gift cards, each with slightly different rules – and slightly different risks for consumers.
Single-store cards, as their name implies, can be used only at a specific store or store group.
General-use cards are the mall- or credit-card-branded cards that consumers can use at a variety of stores or restaurants.
Under Ohio law, single-store gift cards must hold their full face value for at least two years. Retailers can't charge purchase fees for single-store cards, nor can they impose any other fees that reduce the cards' value in that two-year period.
State law exempts some gift cards, including those sold for nonprofit fundraisers or given away as rewards or promotions.
The biggest risk single-store cards carry is that the store could fold before a consumer has a chance to use the card.
The federal rules on gift cards that went into effect last year apply to both single-store and multi-store cards:
• Gift cards can't have an expiration date that's less than five years from the date of purchase.
• Card issuers can't charge more than one fee per month against a gift cards balance, although there's no limit on fee amounts.
• Card issuers can't impose any fees on against the card's balance unless the card hasn't been used for 12 months. The 12-month clock resets each time you use the card. (In Ohio, single-store cards can't deduct fees for two years.)
So, if you received a multi-store gift card for the holidays last year and you've never used it, take it out now and make a least a small purchase to protect it against monthly fees.
The biggest risks with multi-store cards is fees: Some carry a fee just to buy the card, and, if the recipient doesn't use the card fast enough, fees can erode its value.
After the federal rules went into effect, banks that issue multi-store gift cards began slashing fees. But because terms and costs vary widely from card to card, consumers should compare several cards before they buy.
If you give gift cards as presents, wrap them with the original receipt, just in case there's trouble, and urge the recipient to use the card fast.
Or give cash. No one ever forgets to use that.

[MCRogers1974]

Just had lunch at Damon's today. Apparently the Damon's chain is bankrupt and going into liquidation. The City location is in the process of changing over to a place called "Crawfords".

The food in Damon's was never really all that good - average at best. Too many other choices, in my opinion.

[Southsider2k12]

We used to go all of the time when it first opened. I love the trivia game, plus I though the food was decent for the price. It got way more expensive, and the menu got way more limited. I was wondering how much longer it would last.

I think the next chain to close in City will be Applebees.

[taxthedeer]

Crawford's is known for their sea food dishes. They seem to be a little more upscale than Damon's.

Here's a want ad that appears in The News-Dispatch:

Be part of
the next big thing
in Michigan City!
Now hiring
experienced servers,
bartenders,
and FOH Supervisor.
Must be available
to work nights
and weekends.
Come join a
winning team.
Applications will be
available at the
Front Desk of the
Clarion Inn & Suites.

Personally I would rather see a Tilted Kilt franchise in that location:

http://www.tiltedkilt.com/

[Southsider2k12]

The conversion to Crawford's Pub and Eatery happens on Monday August 20th. This is their new facebook page.

https://www.facebook.com/CrawfordsPubEatery

[Oscar Gurtgorter]

Personally I would rather see a Tilted Kilt franchise in that location:

http://www.tiltedkilt.com/



Just another mediocre franchise featuring unremarkable food, no signature drinks or beer and arguably the very best uniforms on this planet.

[Job]

The food in Damon's was never really all that good - average at best. Too many other choices, in my opinion.

]
Their ribs were way overrated.

[MCRogers1974]

The conversion to Crawford's Pub and Eatery happens on Monday August 20th. This is their new facebook page.

https://www.facebook.com/CrawfordsPubEatery

Anyone eaten there yet?