Urgent Alert: Synergy Gift Cards May Now Be Worthless After Bankruptcy Filing
Millions — potentially billions — of dollars in gift cards could now be unusable after Synergy, the company behind popular multi-restaurant gift cards, announced it is shutting down and filing for Chapter 7 bankruptcy.
If you have a Synergy Restaurant Gift Card, time is officially up.
What Happened?
San Diego-based Synergy, which operates a multi-restaurant gift card network accepted at over 100 restaurants per city, announced Thursday that it plans to file for Chapter 7 bankruptcy protection and is winding down operations immediately.
Because of this:
- Gift cards are considered unsecured collateral in bankruptcy
- Unsecured claims are typically not paid
- That means unused Synergy gift cards may now be worthless
Where Were These Gift Cards Sold?
Synergy gift cards were widely available and trusted, including sales through Costco and other major retailers.
They were valid at local restaurants across dozens of cities and states, including:
- California
- Florida
- New York
- New Jersey
- Colorado
- Texas
- Virginia
- And many more
Each card was tied to a specific city and usable at participating local restaurants — until now.
What Should You Do Right Now?
If you still have a Synergy Restaurant Gift Card:
- ❌ You may no longer be able to redeem it
- ❌ Restaurants may refuse it due to the shutdown
- ❌ There is likely no reimbursement through bankruptcy
Unfortunately, if the card was not redeemed before operations ceased, consumers may be out of luck.
Why This Matters
This situation highlights a major risk with third-party gift card networks:
- The card issuer fails → the gift card can instantly lose value
- Even cards sold at trusted retailers are not guaranteed
- Bankruptcy law does not protect gift card holders
Final Takeaway
If you or someone you know purchased a Synergy Restaurant Gift Card, especially through Costco or as a gift, check immediately — but be prepared that the card may no longer work.
This serves as a reminder to:
- Use gift cards quickly
- Avoid holding large balances
- Be cautious with third-party or network-based gift cards
Have one sitting in your wallet? Unfortunately, it may already be too late
