TGI Fridays Inc., a well-known casual dining chain, has filed for Chapter 11 bankruptcy in Texas. The executive chairman of the company, Rohit Manocha, indicated that the chain has yet to fully recover from the impacts of the COVID-19 pandemic. Famous for its hamburgers, loaded potato skins, and $5 happy hour drinks, the Dallas-based bar and grill chain stated in a press release that this decision aims to “address legacy liabilities and position restaurants for long-term success.”
Despite the bankruptcy filing, 39 corporate-operated domestic restaurants will continue to operate. TGI Fridays, short for “Thank God It’s Friday,” has franchised its brand to 56 franchisees in 41 countries. These franchised locations, both within the United States and internationally, remain independently owned and are not part of the Chapter 11 process.
The company plans to utilize the Chapter 11 restructuring process to explore strategic alternatives to ensure the brand’s long-term viability. Executive Chairman Manocha stated that these steps, though challenging, are necessary to protect the interests of stakeholders, including franchisees and team members globally.
The financial difficulties faced by TGI Fridays are primarily attributed to the pandemic and the company’s capital structure. The restructuring process is expected to allow the company’s operations to continue with an optimized corporate infrastructure.
The TGI Fridays brand and its related intellectual property are excluded from the Chapter 11 filing due to a securitization agreement with a separate investor group. Recently, the company has closed 12 locations in the U.S. and 35 internationally. In January, 36 underperforming restaurants were also closed as part of a strategy for long-term growth.
Earlier this year, TGI Fridays sold eight corporate-owned restaurants to its former CEO, Ray Blanchette. The company, which has been serving customers for over 50 years, currently operates more than 461 restaurants in 41 countries, offering classic American food and iconic drinks alongside authentic service.
This report includes contributions from Fox News’ Kristen Altus and Daniella Genovese.
