Nov 2, 2024 - Business
TGI Fridays files for bankruptcy
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TGI Fridays filed for Chapter 11 bankruptcy protection Saturday, becoming the latest in a series of once-high-flying casual dining chains to fall into turmoil.
The big picture: This year is on track to see the most bankruptcies declared in decades outside of 2020, when the pandemic hit.
- Chain restaurants were squeezed between fast-casual eateries and home cooking as customers tightened their budgets.
- The COVID pandemic didn't help either. Extended closures also precipitated a drop in traffic, which hasn't fully recovered.
Zoom in: Fridays said it hopes to use Chapter 11 to restructure and continue operating.
- The bankruptcy includes the 39 locations owned and operated by the company.
- The case does not include the 56 franchised Fridays locations or the company's brand, which is owned by TGI Fridays Franchisor LLC.
State of play: A slew of casual dining restaurants have encountered turbulence this year.
- Hooters of America is in talks with lenders and advisers about its own financial woes.
- Sit-down chains Red Lobster, Buca di Beppo and Hawkers Asian Street Food entered bankruptcy this year.
- Fast-casual chains weren't immune. Rubio's, Tijuana Flats and Roti also filed for bankruptcy.
What they're saying: "The primary driver of our financial challenges resulted from COVID-19 and our capital structure," Fridays chairman Rohit Manocha said in a statement.
- "This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
