2024-11-02 13:56:24 :
TGI Friday’s became the latest restaurant chain to file for Chapter 11 bankruptcy in Texas on November 2, Bloomberg reported.
The casual restaurant chain said it faces challenges from changing consumer habits amid a cost-of-living crisis and increased competition in fast-food options, the report added.
Earlier on October 31, Reuters reported that TGIF had “exhausted funds to meet its debt obligations.” It cited a June 2024 statement from an independent auditor about the restaurant, The Wall Street Journal reported.
File for bankruptcy
TGI filed for Chapter 11 bankruptcy in Texas on November 2. The Bloomberg report added that the company’s petition listed assets between $100 and $550 million and liabilities worth between $100 and $500 million.
Bloomberg earlier reported that TGIF was reorganizing under Chapter 11 of the Bankruptcy Code and “evaluating funding and financing options for its restaurants.”
List of depressed chain stores
The report points out that many restaurant chains, including TGIF, have recently sought protection from the courts due to increasing competition from “faster” competitors such as Chipotle.
As well as casual dining, budget diners are also feeling the impact, as housing costs and inflation continue to push customers to eat at home, be picky about dinners out, or change preferences to save money, the report added.
Other companies filing Chapter 11 proceedings include Red Lobster Management, which received court approval in September 2024 to file Chapter 11 under new ownership. The well-known chain is looking to reverse years of declining sales, expensive rent and ditching its “losing money-losing Ultimate Endless Shrimp” promotion, the report said.
In addition, this year alone, Italian chain Bucca di Beppo, fish taco chain Rubio’s Coastal Grill and Mexican restaurant chain Tijuana Flats also filed for bankruptcy.
(Opinions from Bloomberg, agencies)
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