Texas, USA (AP) — TGI Fridays, the well-known American dining establishment, has officially entered Chapter 11 bankruptcy proceedings as of Saturday, according to an announcement made by the company. The decision was made in Texas, where the chain hopes to leverage this restructuring to secure its future.
The iconic bar and grill, famous for its diverse menu that includes hamburgers, chicken wings, and vibrant cocktails, reassured patrons that all of its locations, both domestic and international, will continue to serve customers during this transition period. The goal, as outlined in the statement, is to explore strategic options that will enhance the brand’s long-term sustainability.
With a total of 39 company-owned restaurants in the U.S., TGI Fridays emphasized that its franchise operations, which comprise 56 locations within the U.S. and an additional 40 in various countries, will not be affected by the bankruptcy filing. These franchises operate independently of the corporate structure undergoing reorganization.
Executive Chairman Rohit Manocha addressed the challenges ahead, stating, “The decisions we make today, while tough, are crucial for safeguarding the interests of our stakeholders, including our franchisees and dedicated employees worldwide.”
The chain attributed its financial struggles primarily to the lingering impacts of the COVID-19 pandemic and its existing capital framework. Manocha expressed optimism about the future, stating that the restructuring would allow the remaining restaurants to streamline their operations and unlock their full potential.
This move comes as TGI Fridays seeks to redefine its business strategy in an ever-evolving dining landscape.
