Finance
TGI Friday’s Franchises Fret a Run on $50 Million in Gift Cards
- Franchises worry over being reimbursed for voucher redemptions
- Bankrupt chain responsible for gift cards dating back decades
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TGI Friday’s Inc.’s recent bankruptcy could bring in a wave of customers who haven’t been to one of its restaurants in years, but have kept a gift card tucked away in a junk drawer or an old birthday card.
The dining chain, which filed for Chapter 11 protection on Saturday, is liable for almost $50 million in unused gift cards and gift certificates, a hefty sum for a cash-strapped business trying to sell itself in bankruptcy. But, who will foot the bill for any potential surge of gift card redemptions has been a source of anxiety for some TGI Friday’s franchisees.