(TheIndependentStar.com) – In the aftermath of the disastrous COVID-19 lockdowns, beloved American restaurant chain TGI Fridays has fallen victim to the relentless assault of damaging liberal policies.
The company has filed for Chapter 11 bankruptcy protection, a move that affects the parent company operating 39 restaurants but not its franchisees.
This financial crisis stems mainly from the crippling effects of the COVID-19 pandemic and subsequent government-mandated lockdowns that destroyed the hospitality industry.
Executive Chairman Rohit Manocha discussed the root causes of their troubles, stating, “The primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
Founded in 1965 in Manhattan, the once-thriving chain has been forced to take drastic measures to survive.
In a desperate bid to stay afloat, TGI Fridays closed dozens of locations in January 2024, slashing its restaurant count from 270 to a mere 163.
“The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world,” added Manocha.
TGI Fridays has paused rent payments to landlords and vendors as part of its restructuring efforts.
The company is also exploring strategic alternatives to ensure its long-term viability, including potentially closing or selling unprofitable locations.
TGI Fridays is one of many companies that are struggling. Other iconic American restaurant chains like Red Lobster and Buca di Beppo have also been forced to file for bankruptcy protection.
TGI Fridays has been in decline from its peak in 2008, when it had 601 U.S. restaurants and $2 billion in business.
U.S. sales for the chain plummeted to $728 million in 2023, a staggering 15% decrease from 2022.
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