TGI Fridays has closed another large swath of restaurants across the country, continuing the casual-dining chain’s decline toward a potential bankruptcy filing.
According to TGI Fridays’ website, the chain now has 164 U.S. locations, 51 fewer than it had two weeks ago. Local media reports from New Jersey, New York, Ohio and California indicated that TGI Fridays had abruptly shut down in the area in recent days.
It was just the latest wave of closures for Dallas-based TGI Fridays this year. The chain closed 36 restaurants in January and another 12 or so in September and earlier this month, bringing the total tally of closures to around 100. It ended last year with 269 locations, according to data from Restaurant Business sister company Technomic.
The chain has not responded to emailed questions about the closures. But they appear to be a precursor to a potential bankruptcy. A pair of reports last week said the chain was huddling with advisors and lenders in preparation for a Chapter 11 filing. It is expected to happen in Texas in the next few weeks, according to the reports from Debtwire and Bloomberg.
The bankruptcy rumblings continue a roller-coaster year for the chain. In April, it announced plans to merge with U.K. franchisee Hostmore PLC in a deal that was expected to bring some stability to both sides. But by August, that plan was on hold as the two companies worked to sell corporate locations to pay down debt.
Then, in September, TGI Fridays was terminated as the manager of its $375 million whole business securitization (WBS). As a result, it lost control of some of its operations, including its franchise business and royalty stream. The rare termination was due in part to an overpayment of a management fee from the securitization to TGI Fridays.
Days later, Hostmore called off the acquisition, citing the uncertainty surrounding the WBS issue. Hostmore then filed for the U.K. equivalent of bankruptcy and closed 35 locations.
The chain’s tailspin follows years of declining sales and unit counts as consumers shift away from legacy casual-dining brands. TGI Fridays has closed half of its U.S. restaurants over the past decade, and systemwide sales fell 15% last year, according to data from Restaurant Business sister company Technomic. It has also been through four CEOs since the beginning of 2023.
TGI Fridays was founded in New York City in 1965 as a laid-back singles bar. It would later evolve into one of the first casual-dining chains and then into an international brand, with more than 600 restaurants worldwide as of last year.
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