TGI Fridays has joined the long list of companies that have declared bankruptcy. Throughout the year, the casual dining chain has been closing underperforming restaurants as a means to stave off filing for bankruptcy, but it has not been enough to combat the $100 million to $500 million the company owes.
In a statement following the bankruptcy, Executive Chairman Rohit Manocha said TGI Fridays has made the "difficult but necessary actions to protect the best interests of our stakeholders, including our domestiv and international franchisees and our valued team members around the world." He also cited the reason leading up to the decision as financial struggles that "resulted from COVID-19 and our capital structure."
While the future of their remaining 164 US locations is unknown, the hope is they remain open while the company restructures. However, just this week, the chain abruptly closed 50 locations.
TGI Fridays is not alone in their financial issues. Other restaurants chains that have either closed locations or filed for bankruptcy recently include Denny's, Cracker Barrel, Applebee's, Red Lobster, Pizza Hut, Shake Shack, Boston Market and Popeyes.
TGI Fridays opened their first location as a bar in New York City in 1965.