On November 2, 2024, TGI Fridays Inc. filed for Chapter 11 bankruptcy protection, citing significant financial challenges primarily stemming from the Covid-19 pandemic and its capital structure.

The chain has struggled financially in the post-pandemic landscape, with inflation impacting its middle-class customer base and leading to numerous restaurant closures.

The number of TGI Fridays restaurants in the U.S. has plummeted from 269 last year to just 163, following the closure of 36 locations in January 2024 and additional closures in recent weeks.

TGI Fridays' struggles reflect broader challenges in the casual dining sector, where other chains like Red Lobster and Denny's have also faced significant closures and financial difficulties.

The company has secured financing to maintain operations during the bankruptcy process, allowing its 39 corporate-owned restaurants in the U.S. to continue functioning normally.

The company aims to ensure its long-term viability following numerous closures this year, seeking to optimize its operations and protect the interests of its stakeholders.

Rohit Manocha, the executive chairman, described the bankruptcy filing as "difficult but necessary," emphasizing the need for financial restructuring to protect stakeholders, including franchisees and team members.

The bankruptcy filing highlights a gradual decline in TGI Fridays' popularity, as dining preferences have shifted away from traditional sit-down restaurants.

As part of its restructuring efforts, TGI Fridays has paused rent and vendor payments to provide flexibility, with plans to close or sell unprofitable locations.

Among its major creditors, TGI Fridays owes significant debts to delivery service DoorDash, as revealed in the bankruptcy filings.

Industry experts note that casual dining chains like TGI Fridays lack a unique appeal, contributing to their struggles as consumers increasingly favor delivery and upscale fast-casual options.

In the UK, TGI Fridays' operations faced bankruptcy in September 2024 after a failed acquisition attempt, resulting in the closure of 35 restaurants and over 1,000 job losses.