Dallas-based TGI Fridays files for Chapter 11 bankruptcy

A view of a TGI Fridays sign. (Photo by Chris Ison/PA Images via Getty Images)
DALLAS – Dallas-based restaurant chain TGI Fridays filed for Chapter 11 bankruptcy protection on Saturday.
The chain says it is still looking for ways to “ensure the long-term viability” of the restaurant brand.
TGI Fridays Executive Chairman Rohit Manocha in a statement said the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
The chain currently has 163 restaurants in the United States. That number is down from 269 last year, with dozens closing in the last week.
TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those remain open.
According to research company Technomic, TGI Fridays saw $728 million in sales in 2023. That was down 15% from 2022.
The chain, which was founded in 1965, peaked in 2008 with 601 restaurants across the country and $2 billion in business, according to Technomic.
Several chain restaurants have faced difficulties in recent years with the explosion of food delivery apps and upscale fast food chains.
Information in this article comes from the Associated Press and Technomic.