Update 11/2/24: TGI Fridays has now filed for Chapter 11 bankruptcy. Their plan is to restructure and continue trading, but the recommendations in the original post below still apply.
Despite the economy being stronger than ever, some retailers and restaurant chains aren’t doing so well, oftentimes due to being loaded down with debt. Another restaurant chain is seemingly in financial trouble – TGI Fridays.
There have been numerous reports over the last couple of weeks that TGIs is considering filing for bankruptcy. They’ve already closed at least 85 restaurants this year which represents almost 40% of those that were open at the start of 2024.
What Should You Do With TGI Fridays Gift Cards?
If you have any TGI Fridays gift cards, it would be worth redeeming them as soon as possible, whether that’s through visiting a TGIs yourself or reselling the gift cards on a platform like GCX (formerly Raise); it doesn’t look like CardCash is currently buying TGI Fridays gift cards.
If TGIs does file for bankruptcy, in all likelihood their gift cards will still be accepted as payment. However, many of their restaurant closures have come abruptly and so if you wait too long to redeem your gift cards you might find that there’s not one of their restaurants nearby, even if the company itself is still going.
TGI Fridays has struggled for some time, and stores have been closing left and right. You have been posting card deals for this restaurant throughout the year, as recent as August and September. Perhaps you should post a cautionary message to users about buying gift cards from companies that are obviously in financial trouble?
This would mean keeping up with business news and more work for you. This can help users from buying GCs that can end up as a loss when bad news hits, or worst case losing all the value from a “deal”.
This is another reason I am getting away from buying so many gift cards.
https://www.reuters.com/legal/litigation/tgi-fridays-50-mln-gift-card-stash-causes-franchisee-heartburn-2024-11-04/
TGI Fridays franchisees are worried that they could be on the hook for $49.7 million in outstanding customer gift card obligations if the company’s bankruptcy doesn’t go smoothly, an attorney for franchisees said Monday.
The amount of unused gift cards far exceeds the company’s available cash, even after taking into account the $5.9 million that TGI Fridays is borrowing to fund its bankruptcy restructuring, according to court filings.