This Iconic Restaurant Is Reportedly Headed for Bankruptcy—Here's What We Know So Far
In the current state of the economy, staying afloat for many businesses is a task. Fan-favorite restaurants like Red Lobster and Buca di Beppo have both filed for bankruptcy this year, proving that even the most iconic of eateries aren't exempt to the ever-changing ways that consumers choose to spend their dollars. And now, there's another fast-casual restaurant that may be joining the ranks of those shuttering plenty of doors around the nation.
According to Bloomberg, popular New York-born restaurant TGI Fridays is making the proper preparations to file Chapter 11 bankruptcy. Noting that the information was delivered by those familiar with the matter who asked to remain anonymous, the filing could be happening as soon as a few weeks from now. The brand, however, is seeking new financing to keep restaurants in operation throughout the possible bankruptcy process.
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Though the news of the potential filing may come as a surprise to some, the reports come after last month's document filing snafu that caused the Texas-based brand to lose control of most of its assets. And just days later, Hostmore—an U.K.-based operator of the brand—opted to back out of plans made to purchase the chain. As a result, Hostmore, after closing 35 restaurants, filed for what would be the U.K.'s equivalent of American bankruptcy.
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Over the years, it hasn't been easy for TGI Fridays—or restaurants like it. The brand, just like others, has been struggling with bringing customers in and as Restaurant Business Magazine noted, has closed nearly 50 locations in 2024 alone. To date, the restaurant operates 215 restaurants in the U.S., which is a severe drop from its 386 restaurants cited May 2020.
While the news may be devastating to those who fancy the restaurant, the anonymous sources also revealed that there is still a possibility that TGI Fridays may be able to avoid the filing. Only time will tell how this will end up, but here's hoping for a revival of the beloved sit-down restaurant.
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