DALLAS (AP) — Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its locations this year.
The Dallas-based company has filed for Chapter 11 bankruptcy protection in a federal court in Texas.
Rohit Manocha, executive chairman of TGI Fridays, said in a statement that the “key driver of our financial challenges resulted from COVID-19 and our capital structure.”
Sit-down restaurants have faced broader challenges in recent years as diners opt for food delivery or visit upscale fast-food chains like Chipotle and Shake Shack.
A US bankruptcy judge approved a reorganization plan for the Red Lobster seafood chain in September, after years of mounting losses and declining customer numbers.
The popularity of TGI Fridays, founded in 1965, peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, said Kevin Schimpf, director of industry research at Technomic. According to Technomic, U.S. sales reached $728 million in 2023, down 15% from the previous year.
It now has 163 restaurants in the U.S., up from 269 last year. It closed 36 in January and dozens more in the past week.
TGI Fridays Inc. said it owns and operates just 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. They remain open.
