TGI Fridays, the popular American dining chain known for its burgers, chicken wings and cocktails filed for Chapter 11 bankruptcy in Texas on Saturday. The filing allows the company to undergo restructuring while keeping its U.S. and international locations open to customers. TGI Fridays stated that this process would help the brand explore strategic options to support its long-term viability.
The bankruptcy affects TGI Fridays Inc. which operates 39 company-owned locations in the United States. However, the 56 franchise-operated locations across the U.S., along with approximately 40 franchises in other countries, are not part of the Chapter 11 filing and will continue to operate independently. Executive Chairman Rohit Manocha explained that the company’s financial challenges stem from the COVID-19 pandemic’s impact and an unsustainable capital structure.
These pressures have led to the need for restructuring, with the goal of optimizing the company’s infrastructure for its owned locations. Manocha emphasized that these “difficult but necessary actions” are aimed at safeguarding the interests of stakeholders including franchisees and employees worldwide. As TGI Fridays navigates this process, the company hopes to secure a stable future for its brand by creating a streamlined corporate structure.
This restructuring effort is expected to better position TGI Fridays’ remaining corporate-owned locations for growth and operational efficiency. Through Chapter 11, TGI Fridays will continue serving its customers, using the restructuring as an opportunity to enhance its operations and protect its core brand identity.
