TGI Fridays, the casual American dining chain, filed for Chapter 11 bankruptcy in Texas on Saturday, November 2, the company announced.
Known for its hamburgers, chicken wings, and signature cocktails, TGI Fridays said its United States and international locations will remain open as it undergoes restructuring to “explore strategic alternatives” aimed at ensuring the brand’s long-term stability.
The company, TGI Fridays Inc., owns and operates 39 restaurants in the U.S. However, the restructuring will not impact 56 franchise locations in the U.S. or any of its 40 franchise locations overseas, which are independently owned, the firm said.
“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, executive chairman of TGI Fridays, in a statement.
Manocha attributed the financial challenges to the lingering impacts of the COVID-19 pandemic and the company’s existing capital structure.
“This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential,” he said.
