Restaurant chain TGI Fridays filed for Chapter 11 bankruptcy last week, and now the chain is contending with the expensive possibility that customers will try to redeem nearly $50 million in gift cards that never expire. The cards are a liability for the company as it tries to sell itself out of bankruptcy, and will be unable to foot the bill for the gift cards that date back to 2003. Friday’s franchisees rely on the corporation to reimburse them for redeemed gift cards, and while the chain doesn’t expect all gift card holders to cash in on free burgers and fries, there’s real concern among franchisees that the company won’t be able to pull together the funds if they do. Friday’s said they will continue to honor the gift cards. TGI Friday’s blames the COVID pandemic for their financial woes today, something that a good many businesses have experienced.
