Thousands of Costco shoppers across the United States have been left with worthless gift cards after Synergy World, Inc., a San Diego-based gift and loyalty card company, abruptly shut down operations in late January 2026 and announced plans to file for Chapter 7 bankruptcy.
The company, which had been in business for 19 years, built its reputation around restaurant gift cards that were accepted at more than 300 restaurants nationwide. Customers who purchased these third-party gift cards at Costco warehouses now find themselves unable to redeem their remaining balances.
“We fully recognize and sincerely regret the impact this decision has had on our cardholders and the many local restaurants,” Synergy said in a statement on its website. The company initially planned to allow customers to use their cards until January 31 but moved the deadline up to January 30, citing “a tremendous surge in redemption rates.”
Under Chapter 7 bankruptcy rules, gift cards are classified as unsecured claims. That means that people with unused gift cards are unlikely to get their money back through the bankruptcy process.
Some Costco locations have reportedly been offering refunds for the Synergy gift cards, though this appears to vary by store. Costco has not issued an official statement regarding their refund policy for these cards.
Until Synergy’s bankruptcy filing is complete, little will be known about the company’s finances or the total value of unredeemed cards left in customers’ hands.
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