DALLAS (AP) — Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.

The Dallas-based company filed for Chapter 11 bankruptcy protection in a federal court in Texas.

TGI Fridays chief executive Rohit Manocha said in a statement that “the primary driver of our financial challenges has resulted from COVID-19 and our capital structure.”

Chain restaurants have faced several challenges in recent years as diners choose to get takeout or visit upscale fast-food chains like Chipotle and Shake Shack.

A US bankruptcy judge in September approved a reorganization plan for seafood chain Red Lobster after years of growing losses and declining customers.

Founded in 1965, TGI Fridays peaked in popularity in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its US sales were $728 million in 2023, down 15% from the previous year, according to Technomic.

It now has 163 restaurants in the US, down from 269 last year. It closed 36 in January and dozens more in the past week.

TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants worldwide. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. They remain open.