Shoppers who purchased Synergy restaurant gift cards at Costco may now have balances that are worthless after the company shut down and filed for bankruptcy.
In a notice posted to cardholders, the company announced an immediate end to its restaurant network program.
"It is with deep regret and heavy hearts that we must inform you of an immediate and necessary discontinuation of the Synergy Restaurant Gift Card Network Program," the company wrote.
"Unfortunately, a tremendous surge in redemption rates has forced the immediate discontinuation of the program," the notice stated. The company’s statement said that it was “also aware that some merchants have unfortunately decided to stop accepting the cards prematurely, a decision which is outside of our control.”
“We truly apologize for the additional confusion and disappointment this has caused. Effective immediately: Synergy Restaurant Gift Cards (both plastic and eGift) are no longer redeemable,” it said.
The company also confirmed its financial status. "Synergy World, Inc. has commenced a formal wind-down of operations and anticipates filing for Chapter 7 Bankruptcy in the coming months," the notice read.
Synergy gift cards, although sold at Costco, were independent third-party products issued and managed solely by Synergy—not by Costco or any participating restaurants.
Synergy Gift Cards were promoted as multi-merchant cards, accepted at restaurants across several regions, including San Diego, Arizona, Temecula, Las Vegas, San Antonio, Denver, Colorado Springs, Tucson, and the Scottsdale-Phoenix area, according to the company’s website.
Unused Gift Cards
A 2024 Bankrate survey found that 43 percent of Americans have at least one unused gift card, gift voucher, or store credit, with an average unused balance of $244 per person. The total that year was estimated to be $27 billion in unused gift cards.The same report revealed that 34 percent of Americans have lost money due to a gift card mishap: 20 percent let a card expire, 17 percent lost a card, and 12 percent were unable to use a card because the store went out of business.
In Bankrate’s report, Senior Industry Analyst Ted Rossman said, “Gift cards represent real money.”
He said that “stores such as Walmart and Starbucks have more than $1 billion in unused gift cards on their books.”
“Here’s a homework assignment: look around, gather your unused gift cards, and come up with a plan to use them. You might find hundreds of dollars just lying around your house,” Rossman recommended.