TGI Fridays' US franchisor went bankrupt, then hired back its ex-CEO

TGI Fridays Franchisor LLC, which owns and operates 39 corporate TGI Fridays locations, filed for Chapter 11 bankruptcy in November 2024, citing pandemic-era challenges and a struggle to compete with fast-casual alternatives like Shake Shack and Chili's. The chain had closed more than 100 locations over the prior 12 months and cycled through three chief executives since Ray Blanchette resigned as CEO in 2023.

The company had defaulted on its debt, and FTI Consulting stepped in to oversee operations. Then in January 2025, the Wall Street Journal reported that Blanchette — CEO from 2018 to 2023, now founder-CEO of Sugarhill Hospitality and owner of seven TGI Fridays — would step in with his company as the new management for more than 400 locations, replacing FTI Consulting.

The bankruptcy court approved the sale of nine of the 39 corporate-owned locations for $34.9 million. Blanchette, who began at the chain as a manager in training at a Philadelphia TGI Fridays, had tried and failed to bid on those nine restaurants, and had bought a handful of locations in January 2024.

More than 100 locations closed in a year; three CEOs since 2023; Chapter 11 with nine corporate locations sold for $34.9 million.

Pandemic-era debt left the chain unable to service what it owed, forcing an insolvency filing and outside oversight.

Casual-dining's base eroded against fast-casual rivals while leadership churned through three CEOs in two years.

Identity-shifting menu pivots — like introducing sushi to a chain famous for potato skins — failed to rebuild traffic before the cash ran out.

When a chain loses its identity — potato skins to sushi — the bill arrives as leadership churn and closures; rescue capital follows credibility, not menus.

Blanchette's Sugarhill Hospitality took over management of more than 400 TGI Fridays locations in early 2025 while the bankruptcy proceeded, with the nine corporate restaurants sold for $34.9 million under court approval.