TGI Fridays Faces $50M in Unused Gift Cards Amid Bankruptcy Crisis

TGI Fridays’ bankruptcy filing has cast a shadow of uncertainty over nearly $50 million worth of unused gift cards, sparking concern among customers and franchisees alike. The nearly $50 million in gift cards — some of which are more than 20 years old — could be at risk of losing their value, with franchisees fearing they may be left holding the bag if they are not reimbursed by the company.

As the company navigates through Chapter 11 bankruptcy protection, customers who hold TGI Fridays gift cards are advised to redeem them immediately to avoid being caught in the bankruptcy process. If customers delay, they could end up with a fraction of the value of their cards, or potentially nothing at all, as they would be at the bottom of the repayment list.

Gift cardholders may find themselves scrambling to use the cards, especially as TGI Fridays closes underperforming locations. Franchisees, who typically honor gift cards before seeking reimbursement from the chain, are now left in limbo with no guarantee of receiving those funds.

In the face of these issues, TGI Fridays has assured that it plans to honor its gift card obligations, but the uncertainty remains as to how much value these cards will hold throughout the bankruptcy process. If you have one of these gift cards, time is running out — use it before it’s too late.