Casual dining chain TGI Fridays Inc. has filed for Chapter 11 bankruptcy in Texas, citing ongoing challenges stemming from the COVID-19 pandemic. The company's executive chairman, Rohit Manocha, stated that the move was necessary to address legacy liabilities and position the restaurants for long-term success.
Despite the bankruptcy filing, TGI Fridays has announced that 39 of its corporate-operated domestic restaurants will remain open. The company has also franchised the brand to 56 franchisees in 41 countries, with these locations being independently owned and not included in the Chapter 11 process.
Manocha emphasized that the restructuring process will allow the company to explore strategic alternatives to ensure the long-term viability of the brand. He stated that the financial challenges faced by TGI Fridays were primarily due to the impact of COVID-19 and the company's capital structure.
In recent weeks, TGI Fridays has closed 12 U.S. locations and shuttered 35 restaurants abroad. The company previously closed 36 underperforming locations in January as part of a long-term growth strategy.
To support its operations during the Chapter 11 process, TGI Fridays has secured debtor-in-possession financing. The company has also stated that its brand and related intellectual property are not included in the bankruptcy filing due to a securitization agreement with a separate investor group.
TGI Fridays has been serving customers for over 50 years and currently operates more than 461 restaurants in 41 countries. The company is known for its high-quality, classic American food and iconic drinks, as well as its commitment to authentic and genuine service.