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TGI Fridays Files for Bankruptcy amid Financial Troubles

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TGI Fridays Files for Bankruptcy amid Financial Troubles

Restaurant chain TGI Fridays announced on Saturday it has filed for Chapter 11 bankruptcy, the news coming as numerous other similar businesses have done the same.

According to Reuters, the chain has been struggling financially and experienced a “collapsed deal” with a British operator.

“In a filing with the U.S. bankruptcy court for the Northern District of Texas, the company listed both assets and liabilities in the range of $100 million to $500 million,” the article said. The business, which is “privately owned by TriArtisan Capital Advisors,” has “secured a financing commitment to support operations.”

The Reuters report continued:

In September, British restaurant operator Hostmore dropped plans to buy TGI Fridays after it was removed as the manager of TGIF Funding, which owns the right to collect royalties from the restaurant chain franchise.

Hostmore, which operated TGI Fridays in Britain through its unit Thursdays (UK), saw its shares crash 90% after the news, and later announced its intention to enter administration, overwhelmed by debt.

According to its website, TGI Fridays has over 461 restaurants in over 44 countries.

In October, Breitbart News reported Denny’s will be shutting down 150 of its restaurants over the next year:

Denny’s announced the closings in an earnings call on Tuesday, saying it will close 50 locations by the end of 2024, roughly a tenth of its 1,375 locations in the United States. The company said that ‘underperforming restaurants’ have been weighing down its overall bottom line.

Meanwhile, stores across America are shutting down left and right as shoppers are unable to afford to spend money on non-essentials in President Joe Biden’s (D) economy, Breitbart News reported on October 26.

The article noted that smaller chains are having difficulty keeping up with businesses such as Amazon, Walmart, Costco, and Home Depot, which have lower prices.

“In September, Breitbart News reported that middle-class Americans suffering under inflation in President Joe Biden’s (D) economy had become too poor to shop at dollar stores,” the article added.

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