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This year was a bloodbath for retail and dining businesses. In the first nine months of 2024, business bankruptcy filings skyrocketed 33.5%, jumping from 17,051 to 22,762. Among those on the chopping block were a few family favorites and chains that once defined casual dining in America.
Here are 6 restaurants that filed for bankruptcy in 2024.
America collectively mourned when the dream of endless shrimp at Red Lobster finally came to an end when the seafood giant with once 700 locations globally filed for Chapter 11 bankruptcy in May 2024, with over $1 billion in debt and barely $30 million in cash to keep the lights on.
By September, the chain had closed more than 100 restaurants, including its flagship Times Square location, and laid off thousands of workers. In August 2024, RL Investor Holdings LLC, an entity backed by Fortress Investment Group acquired the chain and invested $60 million to stabilize operations.
The chain also hopes to lure customers back with a new happy hour menu.
Another blow to America’s dining scene hit in November 2024, when TGI Friday's, a casual family hangout, filed for Chapter 11 bankruptcy. The chain blamed mounting debt and lingering post-pandemic struggles for its downfall.
By the time the filing was announced, TGI Friday's had already shut down approximately 130 underperforming restaurants earlier in the year.
The Dallas-based company said its 39 corporate-owned locations in the U.S. would remain open during the bankruptcy proceedings.
Buca di Beppo filed for Chapter 11 bankruptcy in August 2024, days after announcing the closure of 13 of its 57 restaurants. Known for kitschy decor and giant pasta portions, the chain pointed to rising food and labor costs and fewer customers as the main reasons behind its financial struggles.
Rubio’s, a Southern California chain that practically put fish tacos on the map, filed for Chapter 11 bankruptcy in June 2024. Blaming inflation and skyrocketing seafood prices, the company also struggled to keep up as diners moved toward cheaper, faster options. Rubio’s shut down 48 locations, leaving 86 restaurants open in California, Arizona, and Nevada. Now under lender control, it’s still serving at the remaining spots.
Boston Market’s long-simmering financial troubles boiled over in February 2024 with its second bankruptcy filing in less than a year.
After briefly crawling out of bankruptcy in late 2023, the chain was buried under lawsuits for unpaid bills and wages, while rotisserie chicken fell off everyone’s cravings list.
Once a suburban dining icon with 1,200 locations, Boston Market now limps along with fewer than 30 stores nationwide.
Sticky’s Finger Joint, a New York-based chicken tender chain, filed for bankruptcy in April 2024. The chain faced pandemic-related losses, rising ingredient costs, and legal challenges, including a $600,000 judgment over a lease dispute and a trademark lawsuit from Sticky Fingers BBQ.
