TGI Fridays, a popular casual dining chain, has closed nearly 50 of its restaurant locations across the United States in just one week. This brings the total number of closures to about 100 for the year as the company appears to be preparing for a bankruptcy filing.
As of last week, the chain had only 164 restaurants still open, a significant drop from the 213 locations that were operating just a few days earlier.
The recent closures follow a trend of TGI Fridays shutting down underperforming restaurants. Earlier this year, the chain closed 36 locations in January, stating that this was part of their plan for growth, according to NY Post.
However, many customers are now tightening their budgets and opting for cheaper dining options, leading to a struggle for TGI Fridays to maintain its business.
TGI Fridays Faces Widespread Closures and Possible Bankruptcy
Local news reports indicate that restaurants in areas like Bridgewater and Watchung in New Jersey and Middletown Township in Pennsylvania have been affected by the recent closures.
The company has not publicly disclosed which locations were closed this time, but it has become clear that the closures span across several states, including California, New York, Ohio, and Florida, according to CBS News.
TGI Fridays has faced challenges in the dining industry, particularly with rising inflation causing many people to spend less on dining out. Instead, consumers are choosing to cook at home to save money.
As a response to these economic pressures, TGI Fridays is reportedly considering filing for Chapter 11 bankruptcy. This would allow the company to restructure its debts and possibly find a buyer for some parts of its business.
Experts believe the bankruptcy filing could happen soon, especially as the company approaches its next lease payment due date. TGI Fridays is not the only restaurant chain facing difficulties, as other popular dining establishments have also filed for bankruptcy this year due to similar financial struggles.
