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Following years of financial difficulties and a failed agreement with UK-based Hostmore, the American casual dining chain TGI Fridays announced on Saturday that it has filed for Chapter 11 bankruptcy protection.
The company reported assets and liabilities between $100 million and $500 million in a filing with the U.S. bankruptcy court for the Northern District of Texas.
Since its first bar opened in Manhattan, New York, more than 50 years ago in 1965, TGI Fridays, which is privately owned by TriArtisan Capital Advisors, has been a popular dining destination.
TGI Fridays, the owner and operator of 39 domestic “Thank God it is Friday!” restaurants, stated that it has obtained a financing commitment to support operations and that it continues to operate all of its corporately owned “happy hour” dining establishments in the United States.
TGI Fridays executive chairman Rohit Manocha stated: “Our capital structure and COVID-19 were the main causes of our financial difficulties.
“Our future restaurants will be able to move forward with an optimised corporate infrastructure that allows them to realise their full potential thanks to this restructuring.”
Following its removal as the manager of TGIF Funding, which holds the authority to collect royalties from the restaurant chain franchise, British restaurant operator Hostmore abandoned plans to purchase TGI Fridays in September.
Following the news, Hostmore, which ran TGI Fridays in Britain through its subsidiary Thursdays (UK), saw a 90% decline in share price and subsequently declared its intention to go into administration due to its overwhelming debt.
In October, Thursdays (UK) administrators announced that 35 TGI Fridays restaurants nationwide had closed, resulting in 1,012 job losses.
The Dallas-based chain said that regular operations will continue in all franchise locations in the United States and abroad following the bankruptcy announcement on Saturday.
The restaurant has been franchised to 56 franchisees in 41 countries by TGI Fridays Franchisor, the company that owns the brand and intellectual property. According to the restaurant owner, those establishments are privately held and are not covered by Chapter 11.