Update 2/23/21: Steak ‘n Shake has paid off its loan which means it’s managed to avoid having to file for bankruptcy. It’s still not clear what their prospects will be like long-term, but this presumably means they’re in a more stable position than they were in recent months.
They’re now suing their lender – it’s worth reading this article for a look at what’s been happening behind the scenes. h/t EW
Steak ‘n Shake gift cards used to go on sale all the time for 20% off. Those deals haven’t been as frequent over the last year or so, although it’s always been possible to buy their gift cards for 25% off any day of the week if you have a Sam’s Cub membership.
If you’re sitting on any of their gift cards at the moment (whether for personal use or reselling), it’s worth being aware that there are reports that Steak ‘n Shake is considering filing for Chapter 11 bankruptcy. Like many restaurants, they’ve been struggling through COVID, although their financial troubles have been ongoing for several years. They’ve closed many restaurants over the past year or two and have debt coming due next month and it’s proving tricky for them to refinance that, hence why they’re looking into filing for bankruptcy.
As with other companies that have done the same thing already, filing for Chapter 11 bankruptcy is completely different to a company liquidating its business. As things stand, Steak ‘n Shake gift cards should still be honored even if there’s a bankruptcy filing, but there’s no knowing what the company’s long-term prospects will be right now.
If you’re sitting on a large number of gift cards, you’ll need to decide if you want to wait things out in the hope that you’ll be able to sell them at a break even or profitable rate in future months or if you’d rather offload them now at a lower resale rate to ensure you aren’t left holding gift cards with no value if things go south quickly.
Wow, I had no clue about that – thanks for the heads up.