TGI Fridays is facing financial difficulties, having recently filed for bankruptcy, partly due to $49.7 million in unused gift cards that could pose a significant financial burden if redeemed. The restaurant chain is concerned that the redemption of these non-expiring gift cards, some dating back to 2003, could exacerbate their financial woes. This situation highlights the challenges faced by the restaurant industry, with other chains like Red Lobster also experiencing similar financial struggles.
TGI Fridays has filed for Chapter 11 bankruptcy protection, citing financial challenges exacerbated by COVID-19 and a changing dining landscape. The Dallas-based chain, once a staple of American casual dining, has seen a significant decline in its U.S. locations, now down to 163 from 269 last year. The company plans to restructure to ensure long-term viability, with only five locations remaining in Texas at DFW Airport. The bankruptcy does not affect its international franchises, which remain open. The move reflects broader struggles in the sit-down restaurant sector.
TGI Fridays and its U.K. franchisee, Hostmore, have announced plans to merge in an all-share deal valued at $220 million, which will take the chain public on the London Stock Exchange under the ticker "TGIF." The merger aims to increase corporate-owned restaurant locations and provide capital for global expansion, with the new company set to own 189 restaurants in the U.S. and the U.K. If approved, the merger is expected to close in the third quarter, marking a significant development for the casual-dining chain after a failed attempt to go public in 2019.
TGI Fridays is recalling over 26,000 pounds of Boneless Chicken Bites due to potential contamination with clear, hard plastic. The recall covers 15-ounce cartons of TGI Fridays Boneless Chicken Bites Honey BBQ flavor, which were produced on October 3 and distributed nationwide. No injuries have been reported. The Department of Agriculture is urging consumers to be aware of the recall.
