Bankruptcy Leaves $50M in TGI Friday’s Gift Cards in Limbo
According to The Sun , TGI Friday’s, a beloved family restaurant chain, has filed for bankruptcy, leaving customers with millions in unused gift cards—approximately $50 million worth. As the popular American diner chain seeks Chapter 11 protection, many customers are worried about the validity of their gift cards, fearing they may not be honored.
During the first bankruptcy hearing on November 2, Judge Stacey Jernigan expressed concerns about the large volume of unused gift cards, particularly those that may have been tucked away in drawers for years. While it’s unlikely that every gift card will be redeemed, the chain’s $50 million worth of vouchers remain valid indefinitely, creating a potential issue for the company as customers rush to claim them.
TGI Friday’s has assured that it will honor the gift cards during its bankruptcy proceedings. The company emphasized that gift card sales have been an important revenue stream, generating about $132,000 in sales per week. Franchisees, however, are concerned about ensuring a reliable source of funds to cover the potential surge in gift card redemptions.
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TGI Friday’s, known for its iconic red and white striped logo, has been a household name since its first store opened in 1965. The chain became an international sensation over the decades. While the future of the restaurant chain remains uncertain, legal experts suggest that the company will likely resolve the gift card dilemma in the coming weeks.
As TGI Friday’s navigates the bankruptcy process, customers who still hold gift cards are encouraged to redeem them sooner rather than later to avoid any potential complications.
