A national restaurant chain is filing for bankruptcy after closing its last location in the Syracuse area.
TGI Fridays filed for chapter 11 bankruptcy protection Saturday in a Texas federal court, according to the Associated Press. The company said it is seeking to “ensure the long-term viability” of the casual dining brand, blaming its financial challenges on the Covid-19 pandemic “and our capital structure.”
The move comes a week after TGI Fridays abruptly closed its last Syracuse location, on the upper floor at Destiny USA. The restaurant had been in the Syracuse mall since at least 2017; another TGI Friday’s closed at ShoppingTown Mall in 2016 after more than two decades.
“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 TGI Fridays’ executive chairman Rohit Manocha in a statement.
According to CNN, the bankruptcy filing affects TGI Fridays’ parent company, which operates 39 restaurants, and not the franchisees that control its remaining locations. All restaurants are expected to operate as usual during the bankruptcy process, though some may close or be sold as part of the restructuring.
TGI Fridays was originally founded in 1965 as a New York City bar on Manhattan’s Upper East Side before growing to hundreds of locations featuring red stripes decor, Tiffany-style lamps and menu offerings like potato skins and ribs. Its bartenders famously trained Syracuse native Tom Cruise for his role in the 1988 film “Cocktail” and servers’ button-covered uniforms were parodied in the 1999 comedy “Office Space,” starring Jennifer Aniston and Ron Livingston.
Today, TGI Fridays has 461 branded restaurants globally. Its website lists eight locations in New York state, including TGI Fridays in Clifton Park, Farmingville, Islip, Middletown, Riverhead, Valley Stream and Yonkers; at the beginning of 2024, there were more than 20 locations across the Empire State.
TGI Fridays peaked in 2008 with 601 restaurants in the U.S. and $2 billion worth of business, according to the Associated Press. Its sales in the U.S. were $728 million in 2023, down 15% from the prior year.
The AP notes that TGI Fridays joins other sit-down chain restaurants that have struggled in recent years, partly due to the Covid pandemic and increased competition from food delivery services or more faster food chains like Chipotle and Shake Shack. Red Lobster and Denny’s have also recently closed multiple locations.
