TGI Fridays has filed for bankruptcy protection, the company confirmed in court documents. File Photo by Andy Rai/EPA-EFE
Nov. 2 (UPI) — TGI Fridays has filed for bankruptcy protection, the company confirmed in court documents Saturday.
The casual dining chain said it will now pursue restructuring under Chapter 11 bankruptcy protection and “explore strategic alternatives in order to ensure the long-term viability of the brand,” according to court documents filed in the Northern District of Texas.
In late October, the Dallas-based franchise announced it was closing 50 locations, leading to speculation about a potential bankruptcy filing.
The company previously shuttered 36 restaurants in January after starting the year with 270 restaurants.
The company currently has 56 franchisees operating across 41 countries.
“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,” TGI Fridays Executive Chairman Rohit Manocha said in a statement issued by the company.
Manocha attributed the company’s financial issues to the COVID-19 pandemic since 2020.
“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 optimized corporate infrastructure that enables them to reach their full potential.”
Last April, TGI Fridays announced a planned merger with British franchiser Hostmore PLC. The deal fell apart a short time later, leading to increased bankruptcy speculation.