TGI Fridays Files for Chapter 11 Bankruptcy | Eater Dallas

"Filed for Chapter 11 bankruptcy protection over the weekend after the closure of around 50 locations nationwide the previous week and more than 80 closures in total for 2024. Headquartered in Dallas, the company operates a mix of franchised and company-owned restaurants spanning 41 countries; the franchised locations, as well as the brand and intellectual property held by the franchisor, are not affected by the filing. A company statement said: “The company expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow the company to explore strategic alternatives in order to ensure the long-term viability of the brand.” Executive chairman Rohit Manocha cited the cause of the current woes as "financial challenges from COVID-19 and the chain’s financial structure" in a statement. Industry context notes this is part of a longer-term decline for casual sit-down chains: Eater observed in a 2017 piece that such chains "have been falling out of favor and facing financial challenges for a decade," linked to the declining spending power of the middle class, and Bloomberg similarly pointed to tighter consumer budgets and a preference for fast food as drivers of the filing. Coverage captures a broader sentiment that it may be "out with the old and in with the new — or, at least, in with the viral." - Courtney E. Smith