Texas, USA (Reuters) — TGI Fridays, the well-known American dining chain famous for its casual atmosphere and signature cocktails, has announced its decision to file for Chapter 11 bankruptcy. The filing took place on Saturday in Texas, marking a significant moment for the iconic brand.
Despite this legal move, the chain reassured patrons that all of its locations, both domestically and internationally, will continue operations during the restructuring phase. The company aims to use this time to “evaluate strategic options that will secure the brand’s future,” a step it views as crucial for long-term sustainability.
TGI Fridays operates 39 company-owned restaurants within the United States, which will be part of the bankruptcy proceedings. However, the 56 franchise locations across the U.S. and an additional 40 international sites will remain unaffected, as they are independently managed.
Executive Chairman Rohit Manocha addressed the challenging circumstances in a company statement, emphasizing that the decision was made to safeguard the interests of all stakeholders, including franchise partners and employees. He pointed to the COVID-19 pandemic and the company’s existing capital structure as the primary contributors to the financial difficulties facing TGI Fridays.
“This restructuring effort is a necessary step towards optimizing our corporate framework and ensuring our restaurants can thrive moving forward,” Manocha stated, expressing optimism for the chain’s future after the restructuring process.
