A POPULAR restaurant chain has quietly closed almost 50 restaurants following reports it is headed for bankruptcy.
TGI Fridays shuttered 49 store locations over the past week according to the website’s store locator, bringing its restaurant footprint down to 164 stores.
TGI Fridays has faced a raft of financial challenges in recent months amid high inflation[/caption]
TGI Fridays has closed up to 100 restaurants this year alone[/caption]
The closures come after Bloomberg reported the burger chain was preparing to file for bankruptcy over the next few weeks.
It is just the latest in a swathe of closures for the 59-year-old restaurant chain.
The group closed 36 stores in January, and another 12 in September, bringing the total tally to almost 100.
TGI Fridays did not immediately respond to comment.
Additional closures from earlier this month took place in the Southeast and Midwest regions, in states like North Carolina, South Carolina, Wisconsin, Michigan and Indiana, as well as two locations in Minnesota.
“We’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet — and exceed — on that brand promise,” TGI Fridays Chief Operating Officer Ray Risley previously said in a press release.
The new closures were revealed by local media reports in New Jersey, New York, Ohio, Florida, Missouri and California finding the business had shuttered spots in recent days.
Some reports suggest a complete exit from a city including in Ohio, Buffalo and New York.
Bloomberg last week revealed the chain was in talks with lenders to help the company through a Chapter 11 bankruptcy process.
A Debtwire report also revealed the chain was talking with advisers after the company was terminated as the manager of its whole business last month.
TGI Fridays “will likely use Chapter 11 to seek a buyer for some portion of its business, to reject leases for unprofitable locations and to restructure its debt so it can emerge from bankruptcy with a smaller but still viable footprint,” Debtwire head John Bringardner told CNN.
The restaurant chain has faced a host of financial challenges in recent years, facing rising expenses and high rents.
RESTAURANT APOCALYPSE
The closures come after a number of other chains filed for bankruptcy this year, including Red Lobster, America’s largest seafood chain, and Italian dining chain Buca di Beppo.
The restaurants have blamed changing consumer behavior for the closures as inflation hits shoppers.
Food prices are on the rice, with diners paying 4% more than they did in May last year.
Amid sticky inflation, diners have been favoring home cooked meals rather than eating out at restaurant chains.
CLASSIC CULT FAVOURITES
The chain was founded in New York City in 1965.
According to its website, the dining chain describes itself as “the original casual dining bar and grill”.
“TGI Fridays offers authentic American food and legendary drinks, served with genuine personal service,” it said.
“Bringing people together to socialize and celebrate the freeing and liberating spirit of ‘Friday’ was the concept’s founding premise.”
It was originally designed to be a place for young, singles to meet.
The restaurant chain serves guests in over 850 restaurants in more than 55 countries.
ABOUT TGI FRIDAYS
TGI Fridays is an American casual dining chain focused on US cuisine
