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TGI Friday's Inc. filed for Chapter 11 bankruptcy protection in the Northern District of Texas on Saturday.
The documents listed the company's assets as between $100 million and $500 million and its liabilities as between $100 million and $500 million.
Rohit Manocha, executive chairman of TGI Friday's Inc., said in a statement on Saturday that the company had taken the "difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world."
Manocha said the "primary driver" of TGI Friday's financial struggles "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," he added.
The casual dining sector has faced increasing challenges brought on by a cost-of-living crisis and consumer preferences shifting toward faster food.
Restaurant consultant Tim Powell told BI in January that the "trend of closures will continue as casual dining has been faced with a sea of sameness for years."
Powell said that Friday's lacked a "position or reason to visit. Few customers want to spend time and money at a casual dining restaurant, and many of them are dated."
Ahead of Saturday's announcement, TGI Friday's had faced a string of location closures as pressure on the business mounted.
The company joins a growing list of restaurant chains to have sought bankruptcy this year.
Business Insider has contacted TGI Friday's for comment.
