Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of its casual dining brand after closing a number of its branches this year.
The Dallas-based company has filed for Chapter 11 bankruptcy protection in Texas federal court.
“Our financial challenges are primarily due to COVID-19 and our capital structure,” TGI Fridays Executive Chairman Rohit Manoucha said in a statement.
In recent years, sit-down chain restaurants have faced broader challenges as they choose to use meal delivery or use upscale fast food chains like Chipotle and Shake Shack.
A U.S. bankruptcy judge in September approved a restructuring plan for seafood chain Red Lobster, which suffered years of mounting losses and declining customers.
Founded in 1965, TGI Fridays’ popularity peaked in 2008, with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Shimp, director of industry research at Technomic. Ta. According to Technomic, U.S. sales in 2023 were $728 million, down 15% from the previous year.
There are currently 163 restaurants in the U.S., down from 269 last year. Thirty-six stores closed in January, and dozens more have closed in the past week.
TGI Fridays Inc. said it owns and operates only 39 restaurants in the United States, which is just a fraction of the 461 TGI Fridays-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and franchises the brand to 56 independent owners in 41 countries. They remain open.
