restaurant chain TGI Fridays filed for bankruptcy protection on 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.
Sit-down chain restaurants have faced wider challenges in recent years, with diners increasingly opting to have their food delivered or visit upscale fast food chains such as: chipotle pepper and shake shack.
A U.S. bankruptcy judge approved the company’s reorganization plan in September. seafood chain red lobster After years of mounting losses and fewer 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. It is said that 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. that 36 stores closed in January, dozens more to close In the past week.
TGI Fridays Inc. said it owns and operates only 39 restaurants in the United States, a fraction of the 461 TGI Friday-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.
