TGI Fridays is the latest restaurant chain to declare bankruptcy. The company filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas.
The company said it expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow it to “explore strategic alternatives in order to ensure the long-term viability of the brand.”
The company said the COVID-19 pandemic and its aftermath created many financial challenges, adding that it is committed to finding ways to return to a firm financial footing.
“The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world,” said Rohit Manocha, TGI Fridays’ executive chairman.
TGI Fridays joins a number of U.S. restaurant chains that have field for bankruptcy protection in 2024, including Red Lobster, Tijuana Flats, Rubio’s, Buca di Beppo and Hawkers Asian Street Food. Denny’s has struggled financially this year and plans to shutter 150 locations.
All locations will remain open during the bankruptcy process
The TGI Fridays bankruptcy only affects the 39 company-owned restaurants. The majority of TGI Friday’s locations are franchises and are not affected by the bankruptcy. The company said all restaurants will remain open during the bankruptcy process.
“In addition to supporting franchise restaurants, TGI Fridays Inc. maintains operations across its corporate-owned restaurants in the U.S.,” the company said in a statement. “The Company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process.”
TGI Fridays Inc., said it has also filed motions with the bankruptcy court that, when approved, will allow the company to, among other things, continue its customer programs in the normal course.
The first TGI Fridays opened in New York City in 1965, catering to baby boomers who were just coming of age. The company operates 600 restaurants internationally and 164 locations in the U.S.