Major Tennessee Restaurant Chain Files For Bankruptcy After 60 Years

The restaurant industry has faced significant hurdles in recent years, with casual dining establishments bearing the brunt of the impact. In Tennessee, several well-known chains are finding it increasingly difficult to stay competitive.

Restaurants Closing

Several key players in the casual dining industry have started closing underperforming locations as rising costs and changing consumer preferences strain their profitability. Among these is a well-known brand that has been a staple in the sector for decades.

After significant cutbacks earlier in the year, the chain has decided to shut down more locations, including the Gatlinburg restaurant, as part of a broader effort to remain viable. These closures are not unexpected, as the company has been gradually scaling back its operations across multiple states.

Nationwide, the company has shuttered 36 locations in total and plans to sell off additional corporate-owned restaurants to reduce costs and focus on its core operations

TGI Fridays Files For Bankruptcy

In November 2024, the company filed for Chapter 11 bankruptcy, outlining plans to restructure its finances while maintaining 39 corporate-owned locations. This marks a pivotal moment for TGI Fridays, a brand traditionally synonymous with casual, fun dining experiences.

The company has struggled to bounce back from the financial effects of the COVID-19 pandemic, along with growing competition in the casual dining space. Although some franchise locations will stay open, the bankruptcy filing marks a critical point for the nearly 60-year-old chain. Once known for its lively "Thank God It's Friday" slogan, TGI Fridays now faces a tough challenge as it works to keep up with a fast-changing market.

Rohit Manocha, executive chairman of TGI Fridays, said: "The primary driver of our financial challenges resulted from COVID-19 and our capital structure…This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."