TGI Fridays, which has 461 locations worldwide, has filed for Chapter 11 bankruptcy.
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Conway Gittens: The Dow Jones Industrial Average is getting a makeover of sorts. Intel is getting kicked out of the venerable index to make way for Nvidia. Intel is down 55 percent year-to-date, while Nvidia is up 177 percent. Dow Chemical is out as well, while Sherwin-Williams is in – all this effective November 8th.
Tuesday of course is Election Day but investors will have other things to watch first. There’s the ISM services index and quarterly results from Yum Brands – the parent of KFC, Taco Bell, and Pizza Hut.
Speaking of food – TGI Fridays is the latest fallout from the lasting effects of the pandemic. The company filed for Chapter 11 bankruptcy protection in order to begin a “restructuring process” that it hopes will ensure the “long-term viability of the brand.”
The casual-dining chain, which has been around since 1965, has been unable to bounce back after the pandemic curtailed eating out, and then inflation forced diners to search for cheaper food options. That put TGI Fridays in a precarious situation given its large real estate footprint.
The company owns 39 restaurants in the U.S. and plans to keep all of them open during the process. There are another 56 independently-owned TGI Friday locations in the U.S. that are not part of the bankruptcy process. There are a total of 461 TGI Fridays around the world.
According to the bankruptcy filing, company assets and liabilities are roughly equal at around $100 million to half-a-billion dollars.
TGI Fridays is not alone in its woes. Red Lobster is in bankruptcy protection. Meanwhile, Wendy’s announced it will close an additional 140 fast-food locations by the end of 2024, on top of the 100 already announced.
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