Bankruptcy fallout: Synergy World Inc. shut down its restaurant gift card program sold at Costco Wholesale, invalidating cards earlier than expected.
Money at risk: Unused balances may be lost since gift card holders are unsecured creditors in Chapter 7.
Act fast: Contact your local Costco about possible refunds and bring proof of purchase if you have it.
A popular multi-restaurant gift card program sold at Costco has suddenly shut down after its issuer filed for bankruptcy, leaving some shoppers stuck with unusable balances.
Here’s what you need to know if you have one of these gifts cards and what to do in the future to protect yourself.
Here’s what happened
Synergy World Inc., the company behind the Synergy Restaurant Gift Card program, announced it was winding down operations and preparing to file for Chapter 7 bankruptcy.
Although cardholders were originally told cards would be honored through January 31, 2026, a surge in redemptions reportedly forced the program to close earlier than planned.
As a result, both physical and digital cards tied to the program were abruptly invalidated. Some customers say they were able to use their cards before the shutdown, while others report restaurants stopped accepting them without warning.
Why this matters to consumers
These cards were marketed as flexible dining options redeemable at multiple restaurants in the San Diego area. They were popular buys for Costco members because they were sold at a discount through Costco.
Shoppers who bought them expecting a deal are now scrambling to recover their money.
When a gift card issuer files for Chapter 7 bankruptcy, cardholders typically become unsecured creditors which means there’s no guarantee they’ll ever recover any unused funds.
What Costco shoppers can do
There may be a silver lining in this story, and a useful tip for all gift card holders across the country.
Multiple customers report that Costco warehouses are offering refunds for your unused Synergy gift cards.
However, responses appear to vary by location, and some stores are still waiting on corporate guidance.
If you purchased one of these Synergy cards:
- Act quickly. Don’t assume the card will still work.
- Contact your local Costco warehouse. Policies may differ by location.
- Bring your receipt if possible. While some shoppers say refunds were processed without proof of purchase, having documentation can help.
- Print out your remaining balance. If you’ve used some of the gift card, bring documentation that shows your remaining balance and Costco should refund you.
- Call ahead. This could save you a wasted trip if your warehouse is still reviewing its policy.
Costco has a long-standing reputation for customer service and standing behind its products. But in cases like this, your timing does matter.
If you’ve been holding onto one of these discounted restaurant gift cards waiting for the “right time” to use it, now’s the time to check your balance and explore your refund options.