Following years of financial difficulties and a failed agreement with UK-based Hostmore, the American casual dining company TGI Fridays announced on Saturday that it has filed for Chapter 11 bankruptcy protection.
The corporation 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 debuted in Manhattan, New York, more than 50 years ago in 1965, TGI Fridays, which is privately held by TriArtisan Capital Advisors, has been a popular eating destination.
TGI Fridays, the owner and operator of 39 domestic “Thank God it’s Friday!” restaurants, stated that it has obtained a funding 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 optimized corporate infrastructure that allows them to realize 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 ambitions to purchase TGI Fridays in September.
Following the revelation, Hostmore, which ran TGI Fridays in Britain through its subsidiary Thursdays (UK), witnessed a 90% decline in share price and subsequently declared its intention to go into administration because to its overwhelming debt.
