@tgifridays
TGI Fridays Inc. has filed for Chapter 11 bankruptcy, citing COVID-19’s negative impact as the main reason.
The company aims to use the bankruptcy filing to explore long-term options to sustain the brand. Executive Chairman Rohit Manocha stated the move is tough but necessary to protect stakeholders, franchisees, and employees worldwide.
Only the parent company—which operates 39 restaurants—is affected, while franchisees running the remaining locations are not.
Financing has been secured, so all restaurants will continue operations during restructuring. TGI Fridays has paused rent payments to vendors, gaining time to reorganize and potentially close or sell unprofitable locations.
Founded in 1965, TGI Fridays became a go-to for American comfort food and is known for its playful decor and bar-centered atmosphere. While total sales hit $1.6 billion in 2022, inflation and reduced middle-class spending have affected the chain’s U.S. operations, which shrank to 163 locations this year.
Challenges have also emerged in the UK, where a failed acquisition led to closures and layoffs.
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