Consumers urged to redeem Tweeter gift cards

NEW YORK, Nov 13 (Reuters) - Consumers should redeem gift cards for use at bankrupt U.S. electronics chain Tweeter before Saturday, or else the cards may no longer be accepted, Connecticut's attorney general said on Thursday.

A federal bankruptcy court has issued an order authorizing the chain to honor its gift cards through Saturday, Connecticut Attorney General Richard Blumenthal said. He said his office, which had received a consumer complaint that Tweeter was refusing to redeem gift cards, and other states will argue for an extension at a hearing on Friday.

"My office will fight to compel Tweeter to honor gift cards after Saturday, but consumers should redeem them immediately," he said.

A Tweeter representative was not immediately available for comment. A notice on the retailer's website, which is advertising store closing sales, said its gift cards will be accepted through Saturday.

Blumenthal said that if the gift cards are no longer accepted, it could take years for consumers to receive any refunds because their only recourse would be to file claims in U.S. Bankruptcy Court for the unused portion of the cards.

Tweeter, which has about 94 U.S. stores, filed for Chapter 11 bankruptcy protection in Delaware on Nov. 5 -- its second bankruptcy filing in two years.

In its filing, the company said it faced "a severe liquidity crisis brought on by slow sales."

Consumers have reduced spending on electronics and other discretionary purchases in response to the financial downturn and credit crunch, pressuring retailers. Another electronic retailer, Circuit City Stores Inc (CCTYQ.PK), filed for bankruptcy earlier this week. (Reporting by Martha Graybow; editing by Richard Chang)