TGI Fridays Shutters 36 Locations Amid Bankruptcy Shakeup

TGI Fridays is on the brink of total collapse—but one man thinks he can bring the company back from the edge of destruction. Former TGI Fridays CEO Ray Blanchette, 58, is taking over management of the remaining restaurants as the once-popular fast-casual chain works through Chapter 11 bankruptcy proceedings. This follows the TGI Fridays chief financial officer, operations chief, general counsel and head of procurement all quitting in fall 2024.

"We can no longer, in good faith, continue to be employed by the company and risk our own personal liability for the company's further operations and obligations," the four executives wrote in a letter to the board, according to The Wall Street Journal.

Blanchette, who currently owns eight locations, was instrumental in TGI Friday's initial success, and believes the chain can be revived. "This isn't rocket science. You have to sell people a good time," he told the WSJ, which describes the situation as an epic mess. "We sell experiences, not groceries."

Blanchette even went undercover in his own store on hit reality TV show Undercover Boss in 2019, and was shocked even then at what was happening behind the scenes. "Repairs and maintenance get bottlenecked at corporate," he said. "Something in the chain is broken." This was a far cry from Blanchette's experience running TGI Fridays during its heyday. "The casual-dining sector I grew up in was bursting at the seams," he said. "When someone got up to leave, I wanted another butt pushing down in that seat."

According to the WSJ, Blanchette made a $30.5 million bid to buy nine out of 39 bankrupt TGI Fridays, including the Dallas-Fort Worth International Airport locations which are said to be lucrative. He also wants to take over the company's debt. "I've spent the vast majority of my career here. It's an entire body of work. I don't want to see the brand go away," he said.

TGI Fridays entrance — Courtesy of TGI Fridays

As of early January 2025, TGI Fridays is closing 36 restaurants and selling nine to Blanchette for an undisclosed sum. "As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays," shared Weldon Spangler, CEO of TGI Fridays, in a press release. "We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering "That Fridays Feeling™" that our fans know and love."

The company remains positive about the future. "Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we've identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise," said Ray Risley, U.S. President and Chief Operating Officer at TGI Fridays. "By strengthening our franchise model and closing underperforming stores, we are creating an unprecedented opportunity for Fridays to drive forward its vision for the future." And if you enjoyed this article, don't miss these 100 Unhealthiest Foods on the Planet.