According to The Sun, A popular restaurant chain, TGI Fridays, has quietly shut down nearly 50 of its locations following reports that it is facing bankruptcy.
Restaurant Footprint Shrinks
According to the website’s store locator, TGI Fridays has closed 49 stores over the past week, reducing its restaurant footprint to 164 locations. This marks a significant decline in the chain’s presence, which has been grappling with financial difficulties for some time. The closures come on the heels of a Bloomberg report indicating that the burger chain is preparing to file for bankruptcy in the coming weeks.
A History of Closures
The recent closures are part of a troubling trend for TGI Fridays, which has seen a substantial reduction in its number of restaurants. Earlier this year, the chain closed 36 locations in January and another 12 in September, bringing the total to almost 100 closures in recent months. The latest shutdowns were reported across various states, including North Carolina, South Carolina, Wisconsin, Michigan, Indiana, and two locations in Minnesota.
Corporate Strategy Shift
TGI Fridays’ Chief Operating Officer Ray Risley previously stated, “We’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet — and exceed — on that brand promise.” This statement underscores the chain’s efforts to reassess its business model amid mounting challenges.
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Potential Complete Exits
Recent reports from local media have indicated that TGI Fridays has closed locations in New Jersey, New York, Ohio, Florida, Missouri, and California. Some sources suggest that the chain may be considering a complete exit from cities like Buffalo and New York.
Bankruptcy Talks Underway
Bloomberg recently reported that TGI Fridays is in discussions with lenders to navigate a Chapter 11 bankruptcy process. According to a Debtwire report, the chain is also consulting with advisers after being terminated as the manager of its whole business last month. TGI Fridays is expected to use Chapter 11 to seek a buyer for portions of its business, reject leases for unprofitable locations, and restructure its debt to emerge with a smaller, more viable footprint.
Industry-Wide Challenges
The closures at TGI Fridays come amid a broader trend in the restaurant industry, with several chains, including Red Lobster and Buca di Beppo, filing for bankruptcy this year. Many restaurants are citing changing consumer behaviors and rising costs as key factors behind their struggles. Inflation has pushed food prices higher, with diners now paying 4% more than they did last year, prompting a shift towards home-cooked meals over dining out.
A Legacy of Casual Dining
Founded in New York City in 1965, TGI Fridays describes itself as “the original casual dining bar and grill.” The chain aims to bring people together to socialize and celebrate the spirit of “Friday.” It currently serves guests in over 850 restaurants across more than 55 countries, though its future remains uncertain as it navigates these challenging times.
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