KUALA LUMPUR – American dining chain TGI Fridays has filed for Chapter 11 bankruptcy protection in Texas, according to a statement from the company issued on Saturday.
However, it is understood that TGI Fridays’ independently owned global franchises are not impacted by the Chapter 11 filing.
In Malaysia, the chain is owned by Craveat International Sdn Bhd, and at this time, local operations remain unaffected.
The popular bar and grill, known for its hamburgers, chicken wings, and signature cocktails, announced that its numerous restaurants in the United States and overseas would remain open while the company seeks “strategic alternatives to ensure the long-term viability of the brand” during the restructuring process.
As reported by AFP, TGI Fridays Inc. operates 39 restaurants within the United States. Notably, the Chapter 11 filing does not encompass the 56 franchise locations in the U.S. and 40 others internationally, which are owned independently.
“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,” executive chairman Rohit Manocha said.
Manocha attributed the financial difficulties primarily to the impact of the Covid-19 pandemic and the company’s capital structure.
“This restructuring will allow our go-forward restaurants to proceed with an optimised corporate infrastructure that enables them to reach their full potential,” he added. The filing was made in the Northern District of Texas.
According to Reuters, TGI Fridays has been a popular dining option since its first bar opened in Manhattan, New York, over 50 years ago in 1965.
The privately owned company by TriArtisan Capital Advisors maintains operations across its corporate-owned venues in the U.S., having secured financing to support ongoing operations.
In September, Hostmore, a British restaurant operator, abandoned plans to acquire TGI Fridays after being dismissed as the manager of TGIF Funding, which holds the rights to collect royalties from the franchise.
Following the announcement, Hostmore’s shares plummeted by 90%, leading to its intention to enter administration due to insurmountable debt.
In October, administrators for Thursdays (UK), which previously managed TGI Fridays in Britain, announced the closure of 35 restaurants in the UK, resulting in 1,012 job losses. – November 2, 2024