A famous restaurant now shutters 50 more locations across the US following reports that the company is headed towards bankruptcy.
TGI Fridays has closed 49 of its restaurants over the past week, as indicated by its store locator, reducing its total to 164 locations.
This move comes on the heels of a Bloomberg report suggesting that the burger chain is preparing to file for bankruptcy in the coming weeks.
This is just the latest round of closures for the 59-year-old chain, which previously shut down 36 locations in January and 12 in September, bringing the total number of closures to nearly 100.
TGI Fridays has not yet responded to requests for comment.
Recent closures have occurred primarily in the Southeast and Midwest, affecting states such as North Carolina, South Carolina, Wisconsin, Michigan, Indiana, and two locations in Minnesota.
Ray Risley, TGI Fridays’ Chief Operating Officer, stated in a press release, “We’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet — and exceed — on that brand promise.”
Local media reports have highlighted additional closures in New Jersey, New York, Ohio, Florida, Missouri, and California, revealing that the business has shut down several spots recently.
Some reports even suggest a complete withdrawal from cities like Buffalo and certain areas in New York.
Last week, Bloomberg reported that the chain was in discussions with lenders to navigate a Chapter 11 bankruptcy process.
A report from Debtwire indicated that TGI Fridays had engaged advisers after being terminated as the manager of its entire business last month.
According to Debtwire’s John Bringardner, the chain is likely to use Chapter 11 to find a buyer for parts of its business, reject leases for unprofitable locations, and restructure its debt to emerge from bankruptcy as a smaller yet viable operation.
In recent years, TGI Fridays has encountered various financial difficulties, including rising costs and high rental expenses.
These closures follow a trend of other restaurant chains filing for bankruptcy this year, including Red Lobster and Buca di Beppo.
The chain has attributed its struggles to changing consumer behaviors amid inflation.
Founded in New York City in 1965, TGI Fridays bills itself as “the original casual dining bar and grill,” offering “authentic American food and legendary drinks, served with genuine personal service.”
The concept was originally intended as a social venue for young singles to meet, and today, the chain operates over 850 restaurants in more than 55 countries.
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