TGI Fridays shutters 49 more locations across US as possible bankruptcy filing looms

TGI Fridays abruptly shuttered astir 50 locations successful nan US complete nan past week – bringing nan company’s full to astir 100 closures truthful acold this twelvemonth arsenic nan institution reportedly approaches a bankruptcy filing.

The 59-year-old burger-and-wings concatenation — which had 270 locations successful nan US astatine nan commencement of this twelvemonth — had shrunk its footprint to 213 unfastened locations arsenic of nan opening of past week. Now, only 164 restaurants remain, according to nan website’s shop locator. 

The abrupt 49 shop closures travel soon aft Bloomberg reported TGI Fridays is preparing to record for bankruptcy protection successful nan adjacent fewer weeks. 

TGI Fridays did not instantly respond to requests for comment.

TGI Fridays abruptly shuttered astir 50 locations successful nan US this week, bringing nan company’s full to astir 100 closures truthful acold this year. Newsday via Getty Images

It is nan casual eating chain’s largest information of shop closures since January, erstwhile it shuttered 36 “underperforming” locations crossed nan US, including 5 successful New York.

Unlike nan closures successful January, TGI Fridays did not merchandise a database of nan affected stores this week, but section media outlets reported edifice closures successful California, New York, New Jersey, Florida, Ohio and Missouri. Store closures successful Columbus, Ohio and Buffalo, New York represented a full exit from nan 2 cities. 

The edifice has been closing stores near and correct this year. Just 2 weeks ago, the institution unopen down a twelve locations successful nan US.

TGI Fridays has struggled to enactment afloat arsenic consumers person pulled backmost sharply connected spending amid sticky inflation, avoiding casual eating chains successful favour of cooking astatine location and redeeming connected costs. 

The institution “will apt usage Chapter 11 to activity a purchaser for immoderate information of its business, to cull leases for unprofitable locations and to restructure its indebtedness truthful it tin look from bankruptcy pinch a smaller but still viable footprint,” John Bringardner, caput of Debtwire, told CNN.

Bloomberg precocious reported that TGI Fridays is preparing to record for bankruptcy protection successful nan adjacent fewer weeks. LightRocket via Getty Images

Bringardner said a bankruptcy filing could travel successful November earlier nan company’s adjacent information of lease payments connected its remaining restaurants.

TGI Fridays is not nan only edifice concatenation successful caller representation to crumble nether pressure. 

Red Lobster, nan nation’s largest seafood chain, revenge for bankruptcy successful May. Italian eating concatenation Buca di Beppo revenge for bankruptcy successful August, and BurgerFi followed suit successful September.

The first TGI Fridays location opened successful 1965. The institution was acquired successful 2014 by backstage equity patient Triartisan Capital Advisors, which besides holds a liking successful P.F. Chang’s. 

TGI Fridays had announced plans to merge pinch its UK franchisee Hostmore earlier making its nationalist indebtedness connected nan London Stock Exchange, but nan woody fell done successful September. The institution has been trying to spell nationalist since 2019.