Martin Lewis has one piece of advice for anyone thinking of buying gift vouchers as a present this Christmas – don’t do it.
On ITV show The Martin Lewis Money Show he answered a question from viewers concerned about what to do with their vouchers for Topshop and Debenhams, with both retailers going into administration.
Topshop owner Arcadia has limited spending on gift cards to 50% of the purchase.
For example, this means only £25 in the value of a card could be redeemed on a £50 order.
Meanwhile troubled department store Debenhams, which is preparing to close all its stores if a buyer is not found, is warning all shoppers to spend their vouchers as soon as possible.
There is currently no spending limit on its vouchers.
Martin said: “Gift vouchers are not safe, if a company goes into administration they’re worth nothing.
“So look I would use your voucher quickly if I were you, I’d get it used. I wouldn’t though, if you don’t want to spend it on something of that value, don’t throw bad money away after good.
“I’d also buy in store, because if you deliver now and something were to happen with the administration, you wouldn’t get the delivery. As long as it’s safe for you to go in store I’d go and use my voucher as quickly as possible.”
And he added: “If you’re thinking of giving gift vouchers for Christmas let this be a warning to you!
“Be careful with gift vouchers this Christmas with so many retailers in trouble.
“Go and give them money to spend in there instead.”