In May, Red Lobster filed for Chapter 11 Bankruptcy after a tumultuous few years. Buca Di Beppo followed suit this summer. Now, TGI Fridays is heading down the same path.
As Delish reports, TGI Fridays filed for bankruptcy protection over the weekend. The restaurant chain said that struggles following the Covid-19 pandemic were the “primary driver of our financial challenges,” and it will use the Chapter 11 process to “explore strategic alternatives in order to ensure the long-term viability of the brand.”
According to CNN, “The bankruptcy affects TGI Fridays’ parent company, which operates 39 restaurants.” The filing does not affect all the franchisee-owned locations. “The company has secured financing so all restaurants will operate as usual while it navigates the bankruptcy process.”
Late last week, anonymous sources told Bloomberg that TGI Fridays was preparing to file for Chapter 11 bankruptcy and was in talks with lenders who could possible keep the company afloat in the meantime. While the restaurant chain is reportedly working with attorneys on bankruptcy preparations, there has yet to be an official statement from TGI Fridays or its legal representation.
In September, the company lost the majority of its assets after failing to file documents to bondholders before the required deadline. Several days later, UK-based operator Hostmore decided to back out of its plans to purchase TGI Fridays and quickly closed 35 restaurants. It also filed for the UK’s version of bankruptcy.
The company’s financial woes are nothing new, however. The restaurant chain has grappled with slow sales and closures—nearly 50 locations in the U.S. alone have closed since the start of 2024. There are 215 locations still in operation, but that’s a far cry from the 386 restaurants that were in business in May 2020.
This doesn’t necessarily mean the end of TGI Fridays as we know it, though. A lot can happen even after a restaurant chain files for bankruptcy. Red Lobster, for example, is trying to making a comeback of its own. In July, RL Purchaser LLC, which is backed by Fortress Investment Group, put up $376 million to take over the seafood chain’s assets. The deal was later approved by the courts in September, providing a green light for restructuring.
Red Lobster is certainly not a lost cause; Fortress has a history of reviving flailing chain restaurants from the trenches of bankruptcy. It’s already done so with Logan’s Roadhouse, Old Chicago Pizza, and Twisted Tenders, all of which were revived after financial troubles. Maybe they can swoop in and save TGI Fridays next.
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