After closing many of its locations this year, restaurant company TGI Fridays filed for bankruptcy protection on Saturday, stating that it is seeking methods to “ensure the long-term viability” of the casual dining brand.
In a federal court in Texas, the Dallas-based business filed for Chapter 11 bankruptcy protection.
According to a statement from TGI Fridays Executive Chairman Rohit Manocha, the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
In general, sit-down chain restaurants have had difficulties lately as customers choose to order takeout or go to high-end fast food eateries like Shake Shack and Chipotle.
After years of growing losses and declining patronage, a U.S. bankruptcy judge in September authorized a reorganization plan for the seafood business Red Lobster.
According to Kevin Schimpf, director of industry analysis at Technomic, TGI Fridays was founded in 1965 and reached its height in 2008, with 601 locations across the United States and a $2 billion enterprise.
According to Technomic, its U.S. sales in 2023 were $728 million, a 15% decrease from the previous year.
There are now 163 eateries in the US, compared to 269 the previous year. In January, it closed 36, and in the last week, it has closed dozens more.
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According to TGI Fridays Inc., it only owns and runs 39 locations in the United States, a small portion of the 461 TGI Friday-branded eateries worldwide.
The intellectual property is owned by a different company called TGI Fridays Franchisor, which has granted franchises to 56 independent owners throughout 41 nations. Those are still available.
