TGI Fridays, an iconic American restaurant chain, filed for Chapter 11 bankruptcy, the company announced Saturday.
TGI Fridays, which boasts over 160 U.S. locations, pointed to the COVID-19 pandemic as the “primary driver of our financial challenges.” The statement continued, explaining the Chapter 11 filing will help the eatery “explore strategic alternatives in order to ensure the long-term viability of the brand.”
“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,” Rohit Manocha, TGI Fridays’s executive chairman, said.
TGI Fridays, the American casual dining chain, files for bankruptcyhttps://t.co/JtXGz0qbfz
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Only the 39 restaurants operated by TGI Fridays’s parent company will be affected by the chain’s bankruptcy filing, the statement clarified.
TGI Fridays has 56 franchisees in 41 countries that will remain “open and serving customers as usual” during the Chapter 11 process as they are independently owned, according to the statement.
“In addition to supporting franchise restaurants, TGI Fridays Inc. maintains operations across its corporate-owned restaurants in the U.S. The Company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process,” TGI Fridays’s statement says. (RELATED: Iconic Fast-Food Chain To Close 140 Restaurants)
“It 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. These motions are typical of the Chapter 11 process and are expected to be heard and approved in the first days of the case,” the statement continues.
TGI Fridays has been in business since 1965 and currently operates 461 restaurants worldwide, according to the statement.