TGI Fridays has gone through a lot of iterations. It started in the 1960s as a hot singles bar. By the '80s and '90s, it had transformed into a nice-enough family-friendly spot for a cheapish night out. Nowadays, the chain has become a place that nobody really wants to go to — at least not enough to keep the casual dining chain out of bankruptcy.

The writing has been on the wall at TGI Fridays for a while. The restaurant has been struggling to pay its bills and foot traffic is down. Its CEO of five years, Ray Blanchette, stepped down in May 2023, and the next guy in the CEO role, Brandon Coleman III, only lasted for two months before exiting for "personal reasons." Coleman was replaced by Weldon Spangler, who, according to his LinkedIn profile, left the role in August.

Fridays closed 36 underperforming corporate-owned restaurants at the start of the year, citing efforts to "optimize and streamline" its operations — business speak for "things aren't going so hot, and we need to cut costs." On November 2, it filed for bankruptcy, citing the COVID-19 pandemic and its capital structure, meaning the setup of its debt and equity, as the primary drivers. The company says it plans to maintain operations across the 39 remaining corporate-owned US locations when it emerges from bankruptcy. The hundreds of TGI Fridays franchises across 41 countries are independently owned entities and, therefore, not part of the bankruptcy process.

If you're a TGI Fridays lover, that means you can still go to the one nearby if you want. But given the restaurant's troubles, I'll take a guess that applies to very few of you. Even if you can't remember the last time you went but happen to have a Fridays gift card, you may want to hurry up and use it. Apparently there are $50 million in unused credits floating around that the company says it will still honor, but you never know how long that will last.

It's been a tough year for many restaurant chains, including Red Lobster and Buca di Beppo. As The Wall Street Journal notes, other than that pandemic-triggered wipeout of 2020, chains appear to be on track to declare more bankruptcies than they have for decades. Like companies in a similar situation, the story of TGI Fridays is one of slow decline before an accelerated crash. The chain was cool and hip until it wasn't, and no one's been able to right the ship — including its private-equity owners. While those firms aren't the sole reason for the chain's death knell, they haven't helped by putting debt on the books they can't pay off.

"You just really have a lot of different challenges. And then eventually private equity looks at businesses like this, and they're like, 'Let's load it up with debt, and that's how we're going to make our money,'" Jonathan Maze, the editor in chief of Restaurant Business Magazine, said. "That's really kind of what happened here."

Your memories of TGI Fridays likely depend on your age. If you're a baby boomer, you may remember the original singles bar that started on New York City's Upper East Side. (If you want to get a sense of the vibe, check out the 1988 Tom Cruise movie "Cocktail," because that's where some of it was filmed.) If you're Gen X or a millennial, you might recall it as more of a family-friendly sports bar. On the fancy scale, it fell closer to Olive Garden than McDonald's but also developed a reputation as a little hokey. (For a sense of this, see the 1999 film "Office Space.") Over time, TGI Fridays became indistinguishable from other bar and grill chains like Applebee's, Chili's, and Ruby Tuesday. So maybe it's no surprise that those restaurants — with the exception of Chili's — have floundered.

"You've got these bar and grill concepts that, on balance, there's just not as many people who want to visit these on a regular basis any longer, for one reason or another," Maze said.

This is partly a story of changing tastes: If diners want a good burger, they'll go to Shake Shack or Five Guys, where the quality is comparable but the price tag is lower. A night on the town might be somewhere nicer, perhaps not a chain restaurant at all. And if they're in the mood for a chain sports bar with more of a focus on the actual sports, they'll hit up, say, Buffalo Wild Wings.

"Buffalo Wild Wings started with, originally, the sports aficionado who'd get bombed on a pitcher of beer and watch NFL games all Sunday afternoon and night," Burt Flickering, the owner of the retail consulting firm Strategic Resource Group, said. "It's been moving to more family-oriented and team-oriented."

It's not that TGI Fridays hasn't tried some different things — getting into events, adding different menu items, trying out different cocktails — but none of it has really worked. Adding to the chain's woes was the pandemic, which crushed dining establishments everywhere. There's been a "delayed effect" of the pandemic on certain restaurants, said John Bringardner, the head of Debtwire, a trade publication that covers dealmaking and debt. Many restaurants were able to scrape by, banking on customers returning post-lockdowns, but that hope has faded.

"The ones that managed to stay through, now they just can't hang on any longer," Bringardner told me. "Business didn't bounce back in the same way that they were hoping."

In addition to grappling with changing tastes, TGI Fridays has also been subject to another trend in the restaurant business: private equity financial maneuvering. The restaurant chain was sold to a pair of PE firms — TriArtisan Capital Advisors and Sentinel Capital Partners — in 2014, though Sentinel eventually exited in 2019. In 2017, Fridays' PE owners decided to undertake a financial deal called whole business securitization, where a company issues debt that's secured by assets that generate cash, like royalties paid by franchisees. They sold debt that was contingent on money that was expected to be made in the future on franchise agreements, IP, licensing agreements, etc. It's not an uncommon practice — Five Guys and Planet Fitness have done it, too. Bringardner explained that at a basic level, it's similar to a bond, but instead of the debt being backed by the entire operations of the company, the assets and liabilities associated with the WBS are carved out from a company's balance sheet and put into a separate entity called a special purpose vehicle, which can usually borrow money at a lower interest rate.

"The interest rate is lower because investors are given very detailed data on the underlying royalty and franchise payments being made to ultimately repay this debt, and investors are first in line for payment, ahead of the company's other costs," he said. The setup has not gone well. As part of the WBS, Fridays was supposed to make regular updates on the associated finances — stuff like the amount of incoming franchisee royalties. But Citibank, the manager overseeing Fridays' financing, terminated its role in September after the company failed to make certain financial reports on time. (Think of it like a publicly traded company being late in filing its annual report with the SEC.) That's the first time a company's been dropped by its financing manager since the 2008 financial crisis. There's now a backup manager, FTI Consulting, in place.

"That was a clear sign of trouble. I mean, a healthy company does not get kicked out of managing it," Bringardner said.

Ragini Bhalla, the head of brand and a spokesperson for Creditsafe, which tracks businesses' financial stability and credit, said the company's track record of paying its bills on time has been "erratic and volatile" over the past 12 months. "You could see they're struggling," she said.

Alicia Kelso at Nation's Restaurant News outlined the "dizzying number of changes" at TGI Fridays over the past few years as the private-equity-led owners tried to see what might stick. One of those attempts included a partnership between TGI Fridays and the virtual kitchen company C3 to add items such as poke bowls and sushi to its menus, which are not Fridays' normal fare. As Kelso notes, TriArtisan invested $10 million in C3 in 2021, so there may have been some mixed incentives there. (I'll note here that TriArtisan is also an owner of Hooters, which, when is the last time anyone was in one of those?)

Strategic Resource Group's Flickering also argued that TGI's owners have been less nimble in reacting to the current environment. The Wall Street owners have been happy to take what profit they've made to pad their bottom line, he told me, rather than reinvesting that money back into the chain to help it improve operations and adapt to changing tastes.

"The private-equity people were so obtuse and not operators, they didn't look at their food-service competitors and channels," Flickering said.

Earlier this year, it looked like Hostmore, which operates TGI Fridays' UK locations, might take over the entire company, but that deal fell through. In September, Hostmore fell into administration, which is basically British for bankruptcy.

TriArtisan and TGI Fridays did not respond to requests for comment.

TGI Fridays isn't necessarily a case where absolutely everything went wrong. It's a situation where enough things just didn't go right. Consumer trends and tastes changed. The pandemic hit. It failed to reinvent itself or pivot. Private equity, as is often the case, wasn't really a boost. The goal of those firms is ultimately to make a profit on their investment, which can happen even absent a true business turnaround.

I went on my very first date, in high school, to a TGI Fridays, though if I'm being honest, it might have been a Chili's or Applebees. I can't tell the difference. That's part of Fridays' problem. The other part of the problem is that I probably wouldn't go there in this day and age unless there really weren't any other options. And apparently, I'm not alone. Given the chain's struggles, a lot of people feel that way. It can always be Friday anywhere, not just TGI Fridays, and maybe at a better price point or nicer experience.

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.