TGI Fridays, the cultural touchstone of American casual dining that has served customers mozzarella sticks and bottomless fries for over half a century, filed for bankruptcy on Saturday, joining the ranks of other struggling sit-down chains like Red Lobster.
TGI Fridays Inc. — the owner and operator of 39 domestic restaurants — filed for Chapter 11 bankruptcy on Nov. 2 as a strategic move to address financial burdens caused by pandemic-driven losses and an overextended capital structure, the Dallas-based company said in a statement. In its filing with the U.S. Bankruptcy Court for the Northern District of Texas, the company reported assets and liabilities between $100 million and $500 million.
"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world," said Rohit Manocha, Executive Chairman of TGI Fridays Inc. "The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our goforward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
The bankruptcy only impacts the 39 U.S. company-owned TGI Fridays locations, leaving the bulk of the brand—over 460 franchised locations in 41 countries—open and unaffected. These franchises are owned by 56 independent operators under TGI Fridays Franchisor, LLC, the entity that controls the brand's intellectual property.
In 1965, Alan Stillman opened the first TGI Fridays at 63rd Street and First Avenue in Manhattan with $5,000 of his own money and another $5,000 borrowed from his mom. With its kitschy decor, “happy hour” concept, and a menu filled with American comfort food favorites like chicken wings and burgers, Fridays quickly became a whole vibe, sparking a cultural shift in casual dining that would soon spread nationwide.
TGI Fridays has been quietly downsizing, with dozens of locations closing in 2024 alone. Just last week, 50 more restaurants were shuttered, bringing the U.S. count down to 163 from 270 at the start of the year. Despite menu changes and efforts to compete with rivals like Applebee’s and Chili’s, the brand has struggled to keep up.
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