If you’re holding onto a TGI Fridays gift card, now’s the time to use it. With TGI Fridays filing for bankruptcy, there’s nearly $50 million in outstanding gift cards floating around, and franchise owners are worried they’ll end up footing the bill without any reimbursement.
TGI Fridays Inc., which owns 39 of the chain’s U.S. locations, just filed for Chapter 11 bankruptcy. This means the company’s trying to restructure and get its finances in order, but there’s a lot of debt and only so much money to go around. Franchisees—who run over 100 locations in the U.S. alone—aren’t thrilled. They could be “left holding the bag” for all those gift cards if people rush to redeem them. Franchises usually get reimbursed by the company when someone uses a gift card, but with this bankruptcy, that money might not be coming.
If TGI Fridays shut down more locations, your gift card might turn into a paperweight. The company has already closed a bunch of “underperforming” spots this year and hinted that more closures could be on the way. So, if your local Fridays are still flipping burgers and serving up loaded potato skins, you might want to swing by and cash in that gift card now before things get messier.
You can technically file a bankruptcy claim if the restaurant closes before you use the card. However, that puts you at the bottom of the payout list, way behind other creditors, meaning you’d be lucky to get even a fraction of the card’s value back.
Fridays aren’t the only restaurant struggling post-pandemic; others, like Red Lobster, are in similar situations, hit by mounting debt, changes in customer behavior, and new fast-casual competition. TGI Fridays just couldn’t keep up as customers migrated to fresher, trendier places.
If you’re in the mood for some delicious appetizers and a cheesy burger, now’s the perfect time to indulge without any guilt. Use that gift card and make it a memorable night—especially as it might be your last chance to enjoy TGI Fridays.
