The TGI Friday's restaurant chain is reportedly on the verge of bankruptcy with almost 50 locations closing within one week in late October 2024, CNN has reported. 

The development marks a significant reduction in the chain's footprint, from 213 to 164 US restaurants as of 28 October. This is the highest number of closures since January, when 36 underperforming locations were shut down. 

The closures have impacted several US states, and have resulted in TGI Friday's completely exiting cities such as Columbus, Ohio, and Buffalo, New York. At the beginning of 2024, the chain had 270 locations in the US. 

Amid the closures, Bloomberg has reported that the chain is “huddling with lenders” for a cash infusion to keep it operating while it navigates the Chapter 11 process. 

Debtwire head John Bringardner said 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.”  

Bringardner further explained that the chain's shrinking number of outlets, shifting consumer preferences and competition from lower-cost fast-food rivals have left the chain “unable to service its debt.” 

A bankruptcy filing is expected to take place in November, before the next round of lease payments is due. 

The restaurant industry has seen a wave of bankruptcies in 2024, with chains such as Red Lobster and Buca di Beppo filing due to changing consumer habits and inflationary pressures.  

Hostmore, the UK-based operator of TGI Fridays, announced its intention to file for administration amidst significant debt challenges and suspended the trading of its shares from 18 September 2024.