TGI Fridays files for bankruptcy protection as sit-down restaurant struggles continue
Says it's looking to “ensure the long-term viability” of casual dining brand.
Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.
The Dallas-based company's Chapter 11 filing in a Texas federal court accelerates a gradual decline for an iconic chain that was once near the center of American pop culture but has seen its customer base dwindle as tastes changed.
The company has boasted that its bartenders trained Tom Cruise for his role in the 1988 film “Cocktail.” Its serving staff's button-filled uniforms, meant to evoke a fun atmosphere, were later parodied in the 1999 satire “Office Space,” starring Jennifer Aniston.
Rohit Manocha, executive chairman of TGI Fridays, said in a statement that the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
Sit-down chain restaurants more broadly have faced challenges in recent years as diners choose to get food delivered or visit upscale fast-food chains like Chipotle and Shake Shack.
In September a U.S. bankruptcy judge approved a reorganization plan for the seafood chain Red Lobster after years of mounting losses. Italian American food chain Buca di Beppo filed for bankruptcy protection in August.
Founded in 1965 as a bar on Manhattan's Upper East Side, TGI Fridays expanded over the following decades to become a ubiquitous suburban gathering spot known for its ribs, potato skins topped with cheese and bacon, and a decor bedecked with red stripes and Tiffany-style lamps.
Its empire peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin
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