TGI Fridays Files For Bankruptcy: American Chain That Popularised Long Island Ice Tea Succumbs to Financial Challenges

From being at the centre of many popular culture references to being the centre of the new cycle on account of bankruptcy, TGI Fridays appeared to have completed a full circle. Headquartered in Dallas, Texas, the restaurant chain was started in New York in the year 1965.

TGI Fridays Goes Bust

The company, whose finances were in the doldrums, has filed for Chapter 11 bankruptcy protection (as per rules and regulations in the United States).

According to the company, which laid its primary focus on 'American Cuisine', financial challenges drove the company to take this decision.

The company could never really recover from its woes, which were inflicted by the global slowdown of the COVID-19 pandemic, which brought the hospitality industry down.

The House of LIT

The company had become a household name in the United States and the world at large due to its presence in popular culture that was exported outside of the United States.

TGI Fridays is also credited by many for popularising the Long Island Ice Tea or LIT, which is a common staple in establishments serving alcoholic beverages across the globe.

Rohit Manocha, TGI Fridays executive chairman, said the company arrived at this position to protect the interests of its existing stakeholders.

The company is owned by TriArtisan Capital Advisors.

The Warning Bell

TGI is another major American icon that succumbed to fiscal troubles in the recent past. This, however, does not come as a surprise; the warning signs were visible early on. At the beginning of 2024, TGI Fridays abruptly closed dozens of stores across the United States.

The final nail in the coffin arrived last week when the company put the lock on outlets in 50 locations. This brought its count down to 163. Before the struggles, TGI Fridays had stores in 270 locations.

TGI Fridays had a total revenue of USD 2 billion and 11,000 employees in 2021.