NEW YORK: TGI Fridays, an American casual dining chain, has filed for Chapter 11 bankruptcy protection after grappling with prolonged financial challenges and a collapsed deal with UK-based Hostmore.
The court filing was lodged at the Northern District of Texas.
Privately owned by TriArtisan Capital Advisors, TGI Fridays has been a beloved dining destination since its inaugural bar opened in Manhattan, New York, over five decades ago, in 1965.
TGI Fridays, owner and operator of 39 domestic “Thank God it’s Friday!” restaurants said it maintains operations across its corporate-owned “happy hour” dining places in the United States, adding that it has secured a financing commitment to support operations.
Rohit Manocha, executive chairman of TGI Fridays said: “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 September, British restaurant operator Hostmore dropped plans to buy TGI Fridays after it was removed as the manager of TGIF Funding, which owns the right to collect royalties from the restaurant chain franchise.
Hostmore, which operated TGI Fridays in Britain through it’s unit Thursdays (UK), saw its shares crash 90% after the news, and later announced its intention to enter administration, overwhelmed by debt.
The administrators of Thursdays (UK) in October said 35 of TGI Fridays restaurants in the country have been closed, leading to 1,012 job losses.
After the bankruptcy announcement last Saturday, the Dallas-based chain said that all of the franchise locations both domestic and international would be operating as usual. — Reuters
