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Protecting your money as Sears announces more closures

2 On Your Side spoke with a consumer expert about what customers here in Western New York need to know as Sears heads into bankruptcy proceedings.

BUFFALO, N.Y. -- SUNY Buffalo State Economics and Finance Chair Fred Floss is keeping a close eye on the financial status of Sears and Kmart.

"Because they couldn't adapt to the landscape, they were then the odd person out," says Floss.

2 On Your Side’s Kelly Dudzik asked Floss how the latest round of Sears and Kmart store closures could impact your money.

"What should somebody do if they have a gift card?" asked Dudzik.

"It may be a little bit harder to find a store to use them. You may need to use them online, but you should them as soon as you can," says Floss.

"What if you have a credit card?" asked Dudzik.

"If you have a Sears credit card, I would make sure that if you want to cancel it to start that process now," says Floss.

"What about warranties then?" asked Dudzik.

"There's going to be the warranty that the manufacturer puts on, and then there's going to be a warranty that Sears will sell you which is really a separate private corporation. So, you want to talk to them about that and make sure you really understand if Sears isn't in Western New York how you would use your warranty," said Floss.

He also says to be wary of sales and to make sure you're really getting a deal before you buy.

“I'm always suspicious when everybody puts a sale sign up. When you start to look at sales and you realize that they're the same price you can buy anywhere else. I suspect a lot of the merchandise is going to go to outlet malls and other places and that things that they can't sell will eventually go on sale. So, you're going to have to wait a little if you're really looking for a good deal," says Floss.

Monday, when the CEO of Sears stepped down, he told employees the company intends to pay their normal wages and continue their benefits without interruption and that the under-performing stores would close near the end of the year.

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