Current:Home > InvestTGI Fridays files for bankruptcy; restaurants remain open amid restructuring -×
TGI Fridays files for bankruptcy; restaurants remain open amid restructuring
View
Date:2025-04-13 05:45:56
TGI Fridays, a favorite casual dining destination, has filed for Chapter 11 bankruptcy protection.
Citing the COVID-19 pandemic among its business challenges, the company filed for bankruptcy Saturday with the U.S. bankruptcy court for the Northern District of Texas in Dallas. The filing encompasses 39 U.S. TGI Fridays locations owned by TGI Fridays Inc.
"The primary driver of our financial challenges resulted from COVID-19 and our capital structure," said Rohit Manocha, the executive chairman of TGI Fridays Inc., in a press release. "This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
The 39 locations will remain open, operating as usual, as the bankruptcy proceedings move forward. Other locations – there are more than 160 in the U.S. and others internationally – along with the TGI Fridays brand and intellectual property are owned by another entity, TGI Fridays Franchisor, LLC. Those locations remain open, too, the company said.
TGI Fridays Franchisor has negotiated a transition services agreement with TGI Fridays Inc., and provided interim funding to the company, "to maintain support services for franchisees" while a "new long-term support structure" is devised, the companies said.
In its bankruptcy filing, TGI Fridays Inc. listed assets and liabilities each in the range of $100 million to $500 million.
'Fantastical Forest':Target transforms stores to kick off holiday shopping season
TGI Friday's closed locations earlier this year
Back in January, TGI Fridays closed several dozen "underperforming" locations in 12 states. Privately owned by TriArtisan Capital Advisors, TGI Fridays grew from its first location opened in Manhattan, New York, in 1965.
TGI Fridays has faced similar challenges to that of Red Lobster, which recently began its emergence from bankruptcy: increased competition and cost-conscious diners.
"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," Manocha said.
Contributing: Reuters.
Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.
What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day
veryGood! (2)
Related
- Alex Murdaugh’s murder appeal cites biased clerk and prejudicial evidence
- No quick relief: Why Fed rate cuts won't make borrowing easier anytime soon
- An armed man found dead at an amusement park researched mass shootings. His plan is still a mystery
- Taylor Swift's Travis Kelce-themed jewelry is surprisingly affordable. Here's where to buy
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- Two Native American boys died at a boarding school in the 1890s. Now, the tribe wants them home
- Make the best Valentine's Day card with these hilariously heartfelt jokes and pickup lines
- Yellowstone’s Kevin Costner Introduces Adorable New Family Member
- Travis Hunter, the 2
- Hootie & the Blowfish Singer Darius Rucker Arrested on Drug Charges
Ranking
- Intel's stock did something it hasn't done since 2022
- Donald Glover shares big 'Community' movie update: 'I'm all in'
- US founder of Haiti orphanage who is accused of sexual abuse will remain behind bars for now
- Massachusetts Senate debates gun bill aimed at ghost guns and assault weapons
- Skins Game to make return to Thanksgiving week with a modern look
- Woman's murder in Colorado finally solved — after nearly half a century
- Meta posts sharp profit, revenue increase in Q4 thanks to cost cuts and advertising rebound
- Gisele Bündchen pays tribute to her late mother: You were an angel on earth
Recommendation
Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
Break away from the USA? New Hampshire once again says nay
South Carolina to provide free gun training classes under open carry bill passed by state Senate
Prosecutors detail possible expert witnesses in federal case against officers in Tyre Nichols death
Stamford Road collision sends motorcyclist flying; driver arrested
Probe into dozens of Connecticut state troopers finds 7 who ‘may have’ falsified traffic stop data
Camila Cabello Looks Unrecognizable With New Blonde Hair Transformation
Small plane crashes in Pennsylvania neighborhood. It’s not clear if there are any injuries