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TGI Fridays, the once-popular restaurant chain, has sold or closed its remaining locations as part of its Chapter 11 bankruptcy proceedings. The chain, known for its casual dining experience, filed for bankruptcy in November 2024 with $37 million in debt after years of declining sales and closures.
Recently, TGI Fridays sold 19 restaurants to existing franchisees. Yadav Enterprises acquired 16 locations for $3 million in debt and other liabilities, while Sugarloaf Hospitality purchased three locations for $100,000 plus additional costs. In January, TGI Fridays also sold nine locations to Mera Corp. for $34.5 million, including five high-grossing units in the Dallas-Fort Worth airport.
The company also rejected leases for six other locations in Maryland, New York, and New Jersey.
In addition, several locations abruptly shut down last week, including four in Las Vegas. The restaurants, located in the Orleans, Sam's Town, Aliante, and Gold Coast casinos, were the only four TGI Fridays in the state of Nevada.
The chain's bankruptcy filing only affected its 39 company-operated locations, most of which have now been sold or closed. As of Monday (February 3), TGI Fridays had 129 restaurants in the U.S., down from 163 at the time of the bankruptcy filing.
The closures and sales mark a significant contraction for TGI Fridays, which peaked in 2008 with 601 U.S. restaurants and $2 billion in revenue. The downturn began in 2009 during the U.S. recession and worsened during the COVID-19 pandemic.
Many businesses struggled in 2024 amid high inflation and changing consumer spending habits. According to the Administrative Office of the U.S. Courts, there was a 14.2 percent increase in bankruptcy filings in 2024. More than 23,000 businesses filed for bankruptcy last year, up from nearly 19,000 in 2023.