TGI Fridays has filed for Chapter 11 bankruptcy, affecting its 39 corporate-owned locations while sparing its franchised outlets in the U.S. and abroad. The restaurant chain, which has seen a significant decline from its peak operations, blames financial struggles on the COVID-19 pandemic and high capital costs. A major concern is the $49.7 million liability in unredeemed gift cards, posing a financial risk to franchisees who rely on corporate reimbursement. Despite securing $5.9 million in bankruptcy financing, the company is grappling with potential asset sales and strategic restructuring to ensure viability. Franchise owners are worried about being 'left holding the bag' if a rush of gift card redemptions occurs. Customers are advised to use their gift cards promptly to avoid losing value amid ongoing financial uncertainty.