The epic mess at TGI Fridays
Subscribe to enjoy similar stories. This fall, the TGI Fridays chief financial officer, operations chief, general counsel and head of procurement quit. “We can no longer, in good faith, continue to be employed by the company and risk our own personal liability for the company’s further operations and obligations," the four executives wrote in a letter to the board, a copy of which was viewed by The Wall Street Journal.
The company filed for Chapter 11 bankruptcy in November. It vacated its longtime Dallas headquarters and is storing over 200 boxes of documents and computer equipment at the homes of some employees, according to bankruptcy court documents. The unraveling of a chain that defined happy hour and family dinner out across America is an epic business saga that spans four CEOs, dozens of restaurant closures, bungled refinance attempts and unpaid bills that no Long Island iced tea could cure.
Its U.S. restaurant count has dwindled to less than 200, including 39 locations that are bankrupt. Complex financial plans by private-equity investors to try to stabilize the company backfired when Fridays couldn’t meet certain obligations during the pandemic and beyond.
Franchise owners became so frustrated with the lack of communication and direction from company leaders that some stopped paying royalties, franchisees and their advisers said. The chain that once said “in here, it’s always Friday" has seen better days. Ray Blanchette, though, isn’t giving up.
Blanchette got his start at Fridays as a restaurant manager-in-training in Philadelphia. He rose to become chief executive of the company from 2018 to 2023, a time when the chain’s candy-colored drinks and specials propelled its bar scene. Blanchette, who currently owns
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