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 several locations this year.

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

TGI Fridays Chief Executive Rohit Manocha said in a statement that “the root cause of our financial challenges stems from COVID-19 and our capital structure.”

Sit-down chain restaurants have faced broader challenges in recent years as customers opt to pick up their meals or visit upscale fast food chains like Chipotle and Shake Shack.

A US bankruptcy judge in September approved the restructuring plan For seafood chain Red Lobster after years of mounting losses and dwindling customers.

Founded in 1965, TGI Fridays’ popularity peaked 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 U.S. sales are $728 million in 2023, down 15% from the previous year, according to Technomic.

The number of restaurants in the USA, which was 269 last year, has now dropped to 163. It closed 36 of them in January and dozens more last week.

TGI Fridays Inc. said it owns and operates just 39 restaurants in the United States; this 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. These remain open.