TGI Fridays’ bankruptcy: What should you do with restaurant gift cards?

Do you have a gift card to TGI Fridays? Use it while you can, experts say.

USA Today reports the restaurant chain is facing issues due to nearly $50 million in unused gift cards. TGI Fridays Inc., which owns 39 of the company's locations, filed for Chapter 11 bankruptcy protection over the weekend, raising questions from more than 60 TFI Fridays franchisees not included in the bankruptcy process.

According to Reuters , the amount of unused gift cards — $49.7 million, to be exact — exceeds the company's available cash, even after the $5.9 million TGI Fridays received to fund its bankruptcy restructuring plan. Some of the gift cards are more than 20 years old, according to court documents .

At a court hearing in Dallas, U.S. Bankruptcy Judge Stacey Jernigan said the company could continue its gift card program on an interim basis. A lawyer for the franchisees said they're worried they'll be "left holding the bag if there is no source of funds to reimburse them"; franchisees typically accept gift cards at payment, then seek reimbursement from the central corporation, which is bankrupt.

So what does that mean for customers who have TGI Fridays gift cards?

According to USA Today, gift card holders should use them ASAP. If they wait, they may end up being worth less than their stated value due to bankruptcy proceedings.

"Go use it; otherwise, you could end up in line for repayment behind a bunch of other creditors ... (and) you'll be lucky, frankly to get pennies on the dollar for it," Debtwire's John Bringardner told the publication.

Of course, using them now may be a challenge for some. TGI Fridays has closed several locations . The closest to the Harrisburg area is a Gettysburg site .

TGI Fridays peaked in 2008 with 601 restaurants in the U.S., but has just 163 left, according to the Associated Press.