- TGI Fridays has sold 9 corporate-owned locations for $34.5M to Mera Global, a Mexico-based restaurant operator.
- The sale includes 5 locations at DFW International Airport and 4 stores in Maryland.
- TGI Fridays intends to use the proceeds to pay down a $24 million bankruptcy loan in full.
- The fast-casual chain reported over 600 US locations in 2008, compared to only 150 today.
In a bid to stabilize its battered balance sheet, TGI Fridays reached a $34.5M deal to sell nine of its corporate-owned locations, according to Bisnow.
Deal Details
TGI Fridays’ Chapter 11 bankruptcy filing in November set the stage for the sale with Mera Global, a Mexico-based restaurant operator specializing in airport and cruise terminal eateries.
Citing $37M in debt as the reason for the bankruptcy filing, these 8 stores—including 5 at Dallas-Fort Worth International Airport and 4 in Maryland—will help TGI Fridays repay a critical $24M bankruptcy loan.
Mera’s winning bid of $34.5M surpassed a $32.5M bid from Ray Blanchette, the former CEO of TGI Fridays, who had increased his offer from $30.5M.
The bankruptcy court’s approval of the sale, issued by Judge Stacey Jernigan on January 4, 2025, allows TGI Fridays to pay off its $24M bankruptcy loan in full.
New Leadership, Restructuring
While TGI Fridays has significantly reduced its US footprint—from over 600 locations in 2008 to just around 150 today—its global reach has continued to grow through franchising and licensing deals.
Despite the brand’s troubles, former CEO Ray Blanchette’s firm, Sugarloaf Hospitality, is expected to take over the management of more than 400 of TGI Fridays’ remaining global locations, including overseeing franchised operations.
Blanchette, who served as TGI Fridays’ CEO from 2018 to 2023, remains involved in the company’s future. His firm’s selection to guide TGI Fridays out of bankruptcy highlights a potential return to stability under new management.
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End of a Casual Dining Era
The sale of the 9 US locations is part of TGI Fridays’ broader efforts to emerge from its Chapter 11 bankruptcy proceedings.
The company’s financial woes were exacerbated in 2023 when creditors, holding $375M in debt tied to franchise royalties, replaced TGI Fridays as the manager of its own franchised locations. This marked the beginning of the chain’s operational struggles, which were further compounded by a failed $220M merger with UK-based Hostmore, TGI Fridays’ largest global operator.
TGI Fridays’ troubles reflect a broader trend in the casual dining sector, where several well-known chains have filed for bankruptcy protection in recent months.
Alongside TGI Fridays, chains like BurgerFi, Buca di Beppo, World of Beer, and Tijuana Flats all struggled with shrinking sales and growing debt, while Red Lobster was already acquired by RL Investor Holdings.
What’s Next for Fridays?
Despite its financial struggles, TGI Fridays remains a popular brand with a loyal customer base. The company is now focused on restructuring and refocusing on its core operations while shedding underperforming assets.
The future of its remaining 30 corporate-owned locations is still uncertain, as TGI Fridays continues to consider additional bids.
For investors and stakeholders, the restaurant chain’s comeback will likely depend on its ability to adapt to changing market conditions, revamp its brand identity, and maximize its global expansion through franchise partnerships.agreements, and improved infrastructure will continue to outweigh the risks.
