Casual dining chain TGI Fridays filed for Chapter 11 bankruptcy on Nov. 2. The Dallas-based company cited issues from Covid-19 and its capital structure as the main culprits for its financial challenges.
The filing only affects TGI Fridays’ 39 domestic restaurants, not the independently owned franchise locations in 41 countries. The company has secured financing to keep operating through the Chapter 11 process.
TGI Fridays in April 2024 had agreed to be acquired by its largest global franchisee, U.K.-based hospitality firm Hostmore, but the deal fell through in September. Hostmore filed administration — the U.K. version of Chapter 11 bankruptcy —a few weeks later.
Founded in New York in 1965, TGI Fridays had closed 36 underperforming locations earlier this year. It shuttered another round of units in October. A number of casual dining brands have filed for Chapter 11 this year, including Red Lobster, World of Beer and Buca di Beppo.
