Gift card company's bankruptcy affecting low-income earners in ⅓ of Dutch municipalities

The bankruptcy of Groupcard, a company that provided prepaid cards such as city passes for municipalities, has affected roughly a third of all municipalities in the Netherlands, according to an estimate by the Association of Dutch Municipalities (VNG). The bankruptcy, first reported by AD on Friday, was officially declared last month by the court in Amsterdam. Many municipalities had contracts with the company, and the financial damage appears to run into the millions.

Cards made by Groupcard were intended, for example, for caregivers or people with low incomes, giving them access to local services and discounts. They could be redeemed at local businesses. But the cards are now no longer valid, and municipalities have lost the money they spent on purchasing them.

According to the VNG, several municipalities are unwilling to let the matter rest and are exploring possible steps to recover their losses. The VNG aims to support them in this effort, so that municipalities may be able to act jointly.

Bankruptcy trustee Carry Dullaart announced on LinkedIn that a buyer has been found for parts of Groupcard. What this means for the tens of thousands of people who hold a Groupcard remains unclear.

The city pass activities are expected to be taken over by the IT company Centric. The company says it is still assessing whether the relaunch can actually go ahead and is in discussions with the bankruptcy trustee and the municipalities involved.

Groupcard was also involved in sustainability programs. That work is expected to be continued by the intermediary Winst uit je woning. According to the trustee’s LinkedIn post, he is still looking for a party willing to take over the company’s gift card operations. He is also continuing to investigate the causes of the bankruptcy.