Bankrupt restaurant chain makes bold comeback in surprise market

Some restaurant chains become more than just places to eat; they are nostalgic symbols in our lives, and when their time runs out, having to say goodbye feels like losing a beloved memory. 

From its first location in New York City, this restaurant chain has established itself as an American classic due to its bar food and great happy hour beverage deals.

💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰

Although it’s an American chain, the brand has become a staple and gained the hearts of many fans worldwide, having expanded into 60 countries.

Related: McDonald’s menu adds experimental new items fans will love

TGI Fridays quietly began closing dozens of locations nationwide in early of 2024, claiming it was a strategic move to boost growth by shedding underperforming restaurants.

However, the shutdowns were ongoing, reaching around 50 before the company finally made an announcement that many feared would become a reality. 

TGI Fridays files for Chapter 11 bankruptcy after mass restaurant closures 

 TGI Fridays filed for Chapter 11 bankruptcy protection in November of last year, as it was $37 million in debt. At the time of the filing, it owned fewer than 40 company restaurants, over 120 franchises, and 316 international locations.

The restaurant chain attributed its demise to the Covid pandemic, which forced the company to temporarily close locations for multiple months, causing it to lose revenue and suffer the aftermath of the slowdown in consumer spending.

Related: Bankrupt restaurant chain offers new deal, stiff drink

TGI Fridays managed to secure financing, which allowed all restaurants to proceed with regular operations, although the bankruptcy only affected the company and not its franchisees.

In January of this year, TGI Fridays got court approval to sell nine corporate-owned restaurants in the Dallas-Fort Worth Airport and Maryland for $34.5 million, which will help repay creditors’ loans.

TGI Fridays announces a major comeback in a surprising market

TGI Fridays is undergoing a significant restructuring process after the tumultuous bankruptcy filing in the U.S. and across 60 countries worldwide.    

At the time of the bankruptcy filing, the company had nearly 90 franchised locations in the UK, many of which were also at risk of shutting down. 

However, Breal Capital and Calveton acquired the UK branch in 2024, rescuing the brand from disappearing in the region while preventing the closure of 51 locations and the loss of thousands of jobs. 

The once-beloved restaurant chain has faced a tough time in the last few years, but its UK management is unwilling to give up on it.

More Retail News:

• Aldi acquires multiple locations from bankrupt retail chain
• Taco Bell takes its Mexican menu somewhere unexpected
• When you’ll see empty retail store shelves due to tariffs

TGI Fridays and Evolv Collection Board Director and Operating Partner Simon Wilkinson announced that TGI Fridays is relaunching in the UK on July 4, the most patriotic day in the U.S.

“Now turning around a brand that has lost it way over circa 7 years is a tough ask in any market. In the current market it’s a heavy lift and requires a tremendous about of work by everyone connected with the brand. There are no guarantees and boldness, bravery, hard work, and commitment may not be enough. However, we as a collective are going to try our hardest,” said Wilkinson in a LinkedIn post.

No specific details about the relaunch were revealed, but Wilkinson said it will be the “comeback of all comebacks” and expressed hope for the brand’s future.   

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

#Bankrupt #restaurant #chain #bold #comeback #surprise #market