You need to take the gift certificates (one of each different type, if the different owners used different ones), and whatever contract or other papers you had for the purchase of the business, to a local attorney.  One of the biggest questions I'd want to ask would be how much you knew about these gift certificates before you closed the deal.

Buying a business is serious business.  Outstanding debts (which is what those GC's are, to the business or the previous owner) that aren't disclosed are just one of the dangers that an experienced attorney can really help protect you from.

If the prior owner did not provide you with good information about the number of these gift certificates and properly adjust the selling price of the business accordingly, then you may have a good case against the seller.

It may be possible for you to refuse to honor those certificates, but you need to discuss all of the facts of the situation.   Normally such certificates must be honored, but there are exceptions.

This is complicated and I can only advise you fully after discussing all of the facts.

Contact my office for a consultation on these issues.

Robert J. Spitz

909 395 0909