TGI Fridays Files for Chapter 11 Bankruptcy, Long Island Locations Remain Open

TGI Fridays, the iconic casual-dining chain, has filed for Chapter 11 bankruptcy as it faces financial challenges due to pandemic-related impacts and longstanding structural debt issues. The company will continue to operate during its restructuring process, seeking to stabilize its finances and possibly transition to new ownership. The bankruptcy filing, made in the Northern District of Texas, involves the chain’s 39 company-owned locations in the U.S., while its franchised restaurants in 41 countries are unaffected.

Long Island’s TGI Fridays locations, including those in Farmingville, Islip, Riverhead, and Valley Stream, have managed to avoid closure despite the chain’s turbulent year. However, with a sharp reduction in the number of locations nationwide—from 215 to just 163 since January—questions linger about the longevity of these local outposts.

Earlier this year, TGI Fridays closed roughly 100 restaurants, including three Long Island locations, in a bid to address its financial troubles. This latest Chapter 11 filing caps a difficult period in which the chain has faced a wave of closures, a halted merger with its U.K. franchise partner Hostmore PLC, and the termination of management rights over a $375 million securitization. The company has secured financing to sustain operations as it works through the bankruptcy proceedings.

“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,” said Rohit Manocha, executive chairman of TGI Fridays Inc. This restructuring will allow the brand’s remaining restaurants to proceed with a streamlined corporate structure aimed at securing long-term viability.

Founded in New York City in 1965, TGI Fridays rose to prominence as one of the pioneers of casual dining, known for its ribs, potato skins, and cocktail-focused menu. Over the past decade, however, the chain has been affected by shifting consumer preferences toward quicker dining options and rising inflation, which has impacted the casual-dining industry broadly.

Photo: Mike Mozart from Funny YouTube, USA, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons

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