The operator of TGI Fridays, a popular American restaurant chain, has filed for Chapter 11 bankruptcy due to mounting financial troubles. The company has been struggling for some time and the bankruptcy filing is a part of the restructuring efforts to help ease it through its financial woes.
The bankruptcy filing was made by Briad Restaurant Group LLC, a New Jersey-based business that operates TGI Fridays franchises in five states, including New York and Pennsylvania. The filing affects about 20% of the 105 TGI Fridays locations owned by the business.
The main reasons cited for the financial troubles include declining sales figures and significantly increased competition in the casual dining market. Over the past few years, the restaurant brand has been struggling to maintain its relevance and competitiveness in the face of changing consumer demands and the emergence of new casual dining brands.
The effects of the COVID-19 pandemic also added significant challenges. The necessary restrictions on indoor dining imposed during lockdowns compounded the company’s financial issues. Despite moving to takeout and delivery models to keep business alive during the pandemic, sales remained far from pre-pandemic levels.
Briad Restaurant Group stated that the bankruptcy filing will not result in the closure of any of its TGI Fridays locations. Under Chapter 11 bankruptcy, businesses are allowed to continue operating while they negotiate with creditors to restructure their debts.
The company assured its employees and customers that it would continue operations as usual while working on a resolution for its financial situation. They maintained that their primary goal is to emerge from the bankruptcy proceedings stronger and better equipped to continue serving their customers.
