October 28th 2024.
According to recent reports, TGI Fridays, a popular American-themed diner chain, has made the decision to close an additional 50 locations, bringing their total number of operating restaurants down to 164 as of Monday. This is a significant decrease from the 213 locations that were still open just last week. While the company has not yet announced the specific locations that have been affected, various local media outlets have reported closures in states such as California, New York, Florida, New Jersey, Ohio and Missouri. In fact, TGI Fridays has completely pulled out of cities like Buffalo, New York, and Columbus, Ohio.
This latest wave of closures is the largest number that the chain has seen since January, when 36 locations were shut down. Despite multiple attempts to reach out for comment, TGI Fridays has not responded to media inquiries. This news comes on the heels of reports from Bloomberg that the company is preparing to file for bankruptcy. Apparently, TGI Fridays is in talks with lenders and looking to secure a loan in order to continue operating its remaining restaurants under Chapter 11 of the United States Bankruptcy Code.
According to sources, the company's goal is to emerge from this situation as a viable operating company. Some experts believe that TGI Fridays will use this opportunity to seek a buyer for portions of its business, reject leases for unprofitable locations, and restructure its debt. John Bringardner, head of Debtwire, stated that the chain will likely come out of bankruptcy with a smaller but still successful footprint.
This is not the first time that TGI Fridays has faced closures in recent months. Both in the US and UK, the company has had to shut down numerous locations. In fact, just a few weeks ago, Breal Capital and Calveton reached a deal to purchase 51 TGI Fridays locations in the UK, but did not include 35 other locations in the deal, resulting in their closure.
In the US, a dozen locations were shut down over the course of a month, leaving many loyal customers disappointed. These closures were spread out across multiple states, including New York, Minnesota, Connecticut, Pennsylvania, Virginia, North Carolina, South Carolina, Michigan, Indiana, and Wisconsin. While TGI Fridays has certainly faced its fair share of challenges, it remains a beloved chain with a strong following of customers. As it navigates this difficult time, the hope is that it will come out stronger and continue to serve up its famous American-style cuisine to hungry diners for years to come.
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