TGI Fridays Files For Bankruptcy

TGI Fridays Inc., the American casual dining chain, has filed for Chapter 11 bankruptcy protection, Jordan Valinsky reported for CNN.

The bankruptcy affects TGI Fridays’ parent company, which operates 39 restaurants, and does not impact the franchisees who control the remaining locations. I Photo: TGI Friday's Trinidad Facebook

The company stated that fallout from the COVID-19 pandemic was the “primary driver of our financial challenges” and that it will use the Chapter 11 process to “explore strategic alternatives to ensure the long-term viability of the brand.”

In a statement, Rohit Manocha 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.”

The bankruptcy affects TGI Fridays’ parent company, which operates 39 restaurants, and does not impact the franchisees who control the remaining locations. The company has secured financing so all restaurants will continue to operate as usual throughout the bankruptcy process.

TGI Fridays has “paused this month’s rent payments to landlords and other vendors, allowing them breathing room to restructure,” John Bringardner, head of Debtwire, told CNN.

He added that the parent company “will likely have to close or sell unprofitable locations as part of the restructuring.”