Restaurant chain TGI Fridays filed for chapter on Saturday, saying it’s searching for methods to “make sure the long-term viability” of the casual-dining model after closing a lot of its places this 12 months.
The Dallas-based firm filed for Chapter 11 chapter safety in a federal courtroom in Texas.
TGI Fridays CEO Rohit Manocha stated in a press release that “the first driver of our monetary challenges resulted from COVID-19 and our capital construction.”
Sit-down restaurant chains have confronted broader challenges lately as diners decide to get meals delivered or go to upscale fast-food chains like Chipotle and Shake Shack.
RELATED STORY | Pink Lobster will shut 23 extra places. That is the place they’re situated.
A U.S. chapter choose in September authorised a reorganization plan for seafood chain Pink Lobster after years of mounting losses and declining prospects.
Based in 1965, TGI Fridays' reputation peaked in 2008 with 601 eating places in america and a $2 billion enterprise, in accordance with Kevin Schimpf, director of trade analysis at Technomic. Its gross sales in america had been $728 million in 2023, 15% lower than the earlier 12 months, in accordance with Technomic.
It now has 163 eating places in america, up from 269 final 12 months. It closed 36 in January and dozens extra final week.
RELATED STORY | Denny's says it hopes to shut 150 places by the tip of 2025
TGI Fridays Inc. stated it solely owns and operates 39 eating places in america, which is only a fraction of the 461 TGI Friday-branded eating places worldwide. An unbiased entity, TGI Fridays Franchisor, owns the mental property and has franchised the model to 56 unbiased homeowners in 41 nations. These stay open.