A popular US restaurant chain has closed almost 50 of their stores across the country in the past week as reports claim it is preparing to file for bankruptcy.
TGI Fridays closed 49 of their locations last week after closing 36 stores in January and a further 12 in September.
This brings their total number of restaurants down from 270 at the beginning of the year to just 163, according to the chain’s store locator.
More: National US chain with 144 locations becomes latest restaurant to file for bankruptcy
The locations of recent closures have not been announced by the company, however local media reports from across the country indicate that several states have been impacted.
These include California, Florida, Missouri, New Jersey, New York and Ohio.
Back in January, the company stated that its decision to close “underperforming” locations was part of its “ongoing growth strategy”.US President and Chief Operating Officer at TGI Fridays, Ray Risley, said at the time: “Our top priority has always been delivering a superior experience for each and every TGI Fridays guest.”
“We’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise.”
The recent closures come following reports from Bloomberg that the company is preparing to file for bankruptcy.
The outlet stated that the chain was “huddling with lenders” in an attempt to keep it operating as it navigates the Chapter 11 bankruptcy process.
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Head of Debtwire, John Bringardner, told CNN that TGI Friday’s will “likely use Chapter 11 to seek a buyer for some portion of its business, to reject leases for unprofitable locations and to restructure its debt so it can emerge from bankruptcy with a smaller but still viable footprint”.
TGI Friday’s would join other large chains, including Red Lobster and Buca di Beppo, in filing for bankruptcy, as the restaurant industry continues to struggle.
The Irish News has contacted TGI Friday’s for comment.
