TGI Fridays closes 50 locations in several states
TGI Fridays closures in several US states herald a possible bankruptcy as the chain struggles to stay afloat.
2024-10-30T12:00:03+00:00- 50 TGI Fridays Locations Closed
- TGI Fridays Bankruptcy Looms
- Competition and Debt Strain the Chain
50 TGI Fridays locations abruptly closed in the past week, signaling a concerning outlook for the chain, which may be nearing bankruptcy.
According to TGI Fridays’ store locator, there are currently 164 operating restaurants. This is a stark contrast to the 213 locations that were open last week.
This marks the largest number of closures since January when 36 locations were shuttered due to “underperformance.”
The company has not responded to requests for comment on the recent closures, nor has it published an official list of affected locations.
Impact of TGI Fridays Closures in Various U.S. Cities and States
However, local media reports indicate that closures have affected restaurants in several states, including California, Ohio, and New York.
Some cities, like Columbus, Ohio, and Buffalo, New York, now have no TGI Fridays presence.
Earlier this year, TGI Fridays had 270 locations in the United States.
These closures come amid reports of a potential bankruptcy declaration by the chain.
A few weeks ago, Bloomberg reported that TGI Fridays is negotiating with lenders to secure liquidity.
The aim would be to use Chapter 11 to find a buyer, reject leases, and restructure its debt.
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According to John Bringardner from Debtwire, TGI Fridays could declare bankruptcy in November, before upcoming rent payments.
The chain has struggled due to fast-food competition and shifting consumer preferences.
This year, other chains like Red Lobster and Buca di Beppo also filed for bankruptcy, as inflation has led many diners to reconsider their spending.