SAN DIEGO (KGTV) — Synergy cardholders are rushing to spend their gift card balances after the company declared bankruptcy, giving customers just days to use their remaining funds before the program ends on January 31st.
Local restaurant owners report a 200% increase in customers using Synergy cards as word spreads about the impending deadline. The gift cards, which can be purchased at Costco, are accepted at more than 100 restaurants throughout San Diego County.
In a statement to gift card holders, Synergy declared it's anticipating filing for Chapter 7 bankruptcy protection and will end its restaurant gift card program on January 31st. After that date, all Synergy restaurant gift cards — both plastic cards and e-gifts — will no longer be redeemable.
Some customers are just learning about the bankruptcy filing. One cardholder said his wife told him about it after finding the news on Facebook.
"This is actually the first time," said Bryan Akagi, a customer visiting a restaurant specifically to use their Synergy card, when asked how often they come to the establishment.
While some restaurants contacted by ABC 10 News are no longer accepting Synergy gift cards, Greek Corner Cafe continues to honor them until the posted deadline at the end of the month. Owners say they're being inundated with phone calls from cardholders trying to use their balances.
"Everybody's trying to use them as quickly as they can, and from what I understand, a lot of other businesses that were using synergy are no longer honoring them anymore. So your selection just dropped by quite a few restaurants," Maroun Bsaibes, the owner of Greek Corner Cafe, said.
Customers expressed disappointment about the program's end.
"The places we've used it before has always worked out fine, so we really enjoyed having them," Akagi said.
ABC 10 News reached out to Synergy World but hasn't heard back.
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