In May, Red Lobster filed for Chapter 11 Bankruptcy after a tumultuous few years. Buca Di Beppo followed suit this summer. Now, another popular restaurant chain is heading down the same path.
Late last week, anonymous sources told Bloomberg that TGI Fridays was preparing to file for Chapter 11 bankruptcy and was in talks with lenders who could possible keep the company afloat in the meantime.
While the restaurant chain is reportedly working with attorneys on bankruptcy preparations, there has yet to be an official statement from TGI Fridays or its legal representation.
In September, the company lost the majority of its assets after failing to file documents to bondholders before the required deadline. Several days later, UK-based operator Hostmore decided to back out of its plans to purchase TGI Fridays and quickly closed 35 restaurants. It also filed for the UK’s version of bankruptcy.
The company’s financial woes are nothing new, however. The restaurant chain has grappled with slow sales and closures—including nearly 50 in the U.S. alone just since the start of 2024. There are 215 locations still in operation, but that’s a far cry from the 386 restaurants that were in business in May 2020.
This doesn’t necessarily mean the end of TGI Fridays as we know it, though. A lot can happen even after a restaurant chain files for bankruptcy. Red Lobster, for example, is trying to making a comeback of its own. In July, RL Purchaser LLC, which is backed by Fortress Investment Group, put up $376 million to take over the seafood chain’s assets. The deal was later approved by the courts in September, providing a green light for restructuring.
Red Lobster is certainly not a lost cause; Fortress has a history of reviving flailing chain restaurants from the trenches of bankruptcy. It’s already done so with Logan’s Roadhouse, Old Chicago Pizza, and Twisted Tenders, all of which were revived after financial troubles. Maybe they can swoop in and save TGI Fridays next.
Megan Schaltegger is an NYC-based writer. She loves strong coffee, eating her way through the Manhattan food scene, and her dog, Murray. She promises not to talk about herself in third person IRL.
