For most small UK retailers, a gift voucher is a promise to supply goods or services later. If the business can still honour that promise before it shuts, it should do so, or offer a refund or another fair remedy if it is able to.
The main question: is the business still solvent?
If the shop is still solvent and is simply closing, the business usually has more flexibility. It may choose to accept vouchers up to a certain date, offer refunds, or set out a clear claims process for customers.
If the company is insolvent, voucher holders become unsecured creditors in the insolvency process, alongside other trade creditors and customers.
That means there is no guarantee of payment, and in many insolvencies unsecured creditors recover little or nothing.
What customers can expect
If the shop is still trading for a short wind-down period, customers may still be able to spend vouchers while the doors are open. In practice, the safest approach is to use vouchers as soon as customers know a closure is coming.
If the business is offering refunds, it should explain clearly how to claim, what evidence is needed, and by when claims must be submitted.
If the business has already entered administration or liquidation, customers should assume the voucher may no longer be accepted unless the insolvency practitioner specifically says otherwise.
What the business should do
A closing retailer should communicate early and clearly. The notice should say when the shop will close, whether vouchers will still be accepted, and whether refunds are available.
The business should also keep a record of all redeemed or refunded vouchers, including voucher reference numbers, amounts, dates, and payment method. That helps with accounting, complaints, and any later insolvency questions.
If the company cannot meet its obligations to voucher holders, it should not try to “solve” the problem with a voluntary strike-off while leaving debts unpaid; an insolvent company should use the proper insolvency route.
When vouchers are e-money
Some gift cards are not ordinary store vouchers. They may be e-money products, especially where they can be used more broadly than one shop or one narrow scheme.
If the product is e-money, the issuer has additional regulatory obligations, including safeguarding customer funds and complying with FCA-related rules.
This is one reason businesses should check the product terms carefully before assuming all gift cards are legally the same.
Can a customer get money back?
Sometimes, yes — but it depends on the facts. If the retailer is solvent and has chosen to offer refunds, customers can usually claim through the process the business publishes.
If the retailer has failed and the original purchase was made by credit card, the buyer may have card-provider protection in some cases, especially under Section 75 for qualifying purchases, or chargeback for debit card payments depending on the card scheme and deadlines.
That does not guarantee recovery from the business itself, but it can be a practical fallback for the original purchaser.
Practical UK guidance for SMEs
For small retailers in the UK, the safest approach is simple: give notice early, be honest about what can and cannot be honoured, and do not overpromise. If you can refund valid vouchers, publish a clear process and pay claims promptly.
If the business is insolvent, get insolvency advice before making public statements or accepting new voucher sales, because voucher liabilities are part of the company’s creditor position.
If there is any doubt about whether a card scheme is e-money, check the terms and the regulatory position before the closure announcement goes out.