TGI Friday’s, known for its casual dining experience, has filed for Chapter 11 of the US Bankruptcy Code in the Northern District of Texas amid financial struggles and a failed acquisition by UK-based Hostmore.
The company has listed assets and liabilities in the range of $100m to $500m in its court filing, as reported by Reuters.
The American chain, which has been an iconic fixture since its first bar opened in Manhattan, New York, in 1965, is privately owned by TriArtisan Capital Advisors.
Despite its current challenges, TGI Friday’s continues to own and operate 39 domestic restaurants. It has announced a commitment to the protection of its restaurants and support for ongoing operations through debtor-in-possession financing.
Executive chairman Rohit Manocha stated: “The primary driver of our financial challenges resulted from Covid-19 and our capital structure.
“This restructuring will allow our go-forward restaurants to proceed with an optimised corporate infrastructure that enables them to reach their full potential.”
In a significant turn of events during 2023, British restaurant operator Hostmore withdrew its bid to purchase TGI Friday’s after being removed as manager of TGIF Funding.
This development saw the value of Hostmore’s shares plummet 90%, eventually leading it to announce plans to enter administration due to overwhelming debt.
Following this financial turmoil, Thursdays (UK), which operated TGI Friday’s in the UK, closed 35 locations in October 2024, resulting in the loss of 1,012 jobs.
However, after announcing its bankruptcy at the end of that month, TGI Friday’s gave assurances that normal operations would continue at all franchise locations in the US and internationally.
TGI Friday’s Franchisor, owner of the brand and intellectual property, has franchised the restaurant chain to 56 franchisees across 41 countries.
These independently owned stores are not included in the Chapter 11 proceedings.
“TGI Friday’s files for bankruptcy protection ” was originally created and published by Verdict Food Service, a GlobalData owned brand.
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