TGI Fridays Files for Bankruptcy, Restaurants Remain Open
TGI Fridays, a popular casual dining chain, has filed for bankruptcy protection, citing the COVID-19 pandemic as a major factor in its financial struggles.
The company, which filed Saturday in the U.S. bankruptcy court for the Northern District of Texas in Dallas, said the cases involve 39 TGI Fridays locations owned by TGI Fridays Inc., but all locations will remain open during the restructuring process.
**Reasons for Bankruptcy**
According to Rohit Manocha, the executive chairman of TGI Fridays Inc., the pandemic’s impact and the company’s debt structure have created financial challenges. He hopes this restructuring will allow the remaining locations to operate more efficiently and reach their full potential.
**What About Other Locations?**
It’s important to note that the filing doesn’t include all TGI Fridays restaurants. Over 160 locations in the U.S. and internationally are owned by a different entity, TGI Fridays Franchisor, LLC. These locations will remain open as well.
TGI Fridays Franchisor has already agreed to support franchisees through written agreements and interim funding while a new long-term support structure is developed.
**Previous Challenges**
TGI Fridays has been facing tough competition and consumers’ growing preference for cost-effective dining options, leading to the closure of several underperforming locations earlier this year.
**Looking Ahead**
TGI Fridays aims to emerge from bankruptcy stronger and better positioned for future success. The company believes this restructuring will help them overcome current difficulties and provide a brighter outlook for their stakeholders, including franchisees, team members, and customers.
