Restaurant chain Friday's files for bankruptcy in the US

Fast-food chain TGI Friday's Inc. has filed for bankruptcy protection in the U.S. after failing to get its business going , BLOOMBERG reports .

“The company filed for Chapter 11 bankruptcy on Nov. 2 in Texas, listing assets of between $100 million and $500 million and liabilities of between $100 million and $500 million,” Bloomberg writes.

According to the agency, Friday's is losing out to cheaper and faster food outlets. Consumers are looking to save money due to inflation and rising housing prices, so they often prefer to eat at home or in the cheapest establishments.

The company operates 39 restaurants in the United States. Its brand and intellectual property rights are owned by TGI Friday's Franchisor LLC, which has 56 franchisees in 41 countries. This company is not included in the bankruptcy proceedings, the agency clarifies.

The bankruptcy filing comes after Bloomberg reported that TGI Friday's was considering financing options to keep its restaurants open as part of its Chapter 11 restructuring.

The company is in talks with creditors to secure a loan to help it continue operating its restaurants through bankruptcy proceedings. The chain also previously defaulted on its shareholder obligations, and some assets were transferred to an external manager.

TGI Friday's is one of several international fast-food chains that have faced increased competition in recent years. The prolonged closure of restaurants and declining traffic due to the covid-19 pandemic have exacerbated the trend. There are now more than 950 TGI Friday's in more than 60 countries. In RUSSIA, the chain operates in Moscow.

Bloomberg notes that the world is set to see a trend of older food franchises closing due to the dominance of cheaper fast food outlets. The previous major food company to file for bankruptcy in May 2024 was the Red Lobster restaurant chain.

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