Gift Cards Sold at Costco at Risk After Issuer Declares Sudden Bankruptcy

Shoppers who snagged discounted restaurant gift cards at Costco, listen up. A popular multi-restaurant card program sold through the warehouse retailer is suddenly in limbo, leaving customers unsure whether their remaining balances will still be honored. Social media and online forums are filling up with confusion as people rush to figure out what happens next and whether they need to act fast.

While some customers report successfully using their cards, others say locations stopped honoring them without warning. The situation is evolving quickly, and timing appears to matter.

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What Happened to the Gift Card Program

The company behind the affected cards is Synergy World Inc., which operated the Synergy Restaurant Gift Card program. The company announced in January 2026 that it was winding down operations and preparing to file for Chapter 7 bankruptcy. Although Synergy initially indicated cards would be accepted through January 31, 2026, a sudden surge in redemptions reportedly forced the program to shut down earlier than planned.

As a result, both physical and digital gift cards tied to the program were abruptly invalidated, leaving many customers with unused balances. The cards were marketed as flexible dining options that could be redeemed at multiple restaurants, particularly in the San Diego area, which made the sudden shutdown especially disruptive for both diners and participating restaurants.

Synergy cited an overwhelming spike in redemption requests following its closure announcement, stating it could no longer sustain the program. The company shared updates through its website and social media channels, confirming that cards would no longer be honored as operations ceased.

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What Costco Shoppers Should Do Now

For customers who purchased these gift cards at Costco, there may be some good news. Multiple shoppers report that Costco warehouses are offering refunds for unused balances on the affected cards. However, experiences appear to vary by location. Some customers say their local warehouse processed refunds without issue, while others were told staff were still waiting on official guidance.

If you’re holding one of these gift cards, your best next step is to contact or visit your local Costco as soon as possible to ask about refund options. Bringing your receipt or proof of purchase may help, though some shoppers say Costco was able to assist without it. Because policies may differ by warehouse, calling ahead could save you time.

The takeaway for shoppers is to act quickly and not assume the card will continue to work. While Costco has a strong reputation for standing behind its members, timing and location may influence your outcome. If you’ve been sitting on one of these restaurant gift cards, now is the moment to check your balance and find out your options before it’s too late.

Related: A New Lawsuit Is Taking Aim at Costco’s Beloved $4.99 Rotisserie Chicken