Costco Recalls Synergy Gift Cards, Offers Refunds

Costco has initiated a recall of Synergy Restaurant Gift Cards sold at its warehouses and online, notifying members that the cards are no longer redeemable following the sudden shutdown of the issuing company, Synergy World.

The warehouse retailer sent letters to customers who purchased the third-party gift cards between October 27, 2025, and January 26, 2026. Synergy World, based in San Diego, ceased operations on January 31, 2026, after announcing plans to file for Chapter 7 bankruptcy. The cards, which offered discounted value such as $80 for a $100 face amount, were redeemable at more than 100 participating restaurants primarily in the southwestern United States, including Arizona, California, Colorado, Nevada, New Mexico, and Texas. Examples of partner establishments included Havana Grill, Bencotto, and The Godfather's Pizza.

Synergy World had operated the program for 19 years, distributing cards through retailers like Costco while handling payments to restaurants. The company initially provided advance notice of its closure, allowing cardholders until January 31 to redeem balances. However, a surge in redemption attempts overwhelmed its systems, leading to an earlier halt...