TGI Fridays files for Chapter 11 bankruptcy protection as restaurant industry struggles continue

TGI Fridays has filed for Chapter 11 bankruptcy protection, citing financial struggles worsened by COVID-19 and a challenging capital structure. The company has closed many locations this year, reducing its U.S. restaurants from 269 to 163. Founded in 1965, TGI Fridays peaked in 2008 with 601 U.S. locations and $2 billion in sales. In 2023, its sales dropped to $728 million, a 15% decline from the previous year. The chain now operates only 39 restaurants in the U.S. and has shifted focus to delivery services. Other sit-down restaurants, like Denny's, are also closing locations to address declining sales.