TGI Friday’s has filed for Chapter 11 bankruptcy in Texas on November 2, facing tough times as consumer habits shift due to inflation and strong competition from fast-food chains, according to Bloomberg.
With higher living costs, more people are eating at home or choosing lower-cost options, creating challenges for casual dining chains like TGI Friday’s. An earlier report from Reuters on October 31 mentioned that TGI Friday’s was running low on funds, with an independent auditor raising concerns back in June.
Bankruptcy Filing Details
In its bankruptcy petition, TGI Friday’s listed assets ranging between $100 million and $550 million, and liabilities between $100 million and $500 million. The company is looking at ways to keep its restaurants running while going through Chapter 11 restructuring.
The Struggles of Casual Dining Chains
TGI Friday’s isn’t alone in this struggle. Other casual dining chains have filed for bankruptcy in recent months, including Red Lobster, Bucca di Beppo, Rubio’s Coastal Grill, and Tijuana Flats. Many are facing similar challenges from high competition and rising costs, leading customers to save money by dining out less frequently.
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