Iconic Dining Chain Files For Bankruptcy

Popular restaurant chain TGI Fridays Inc. has filed for Chapter 11 bankruptcy protection on Sunday.

In a press release, the company said the COVID-19 pandemic was the “primary driver of our financial challenges.”

Rohit Manocha, TGI Fridays’ executive chairman, stated, “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.”

The bankruptcy filing will impact TGI Fridays’ parent company, which owns 39 restaurants.

TGI Fridays goes bankrupt today, files for chapter 11. Bye Fridays.🥹 pic.twitter.com/ebKcYoOhg7

— Icecream.tez 🍨🍦 (@Bird8880) November 2, 2024

Lots of great memories during college at TGIF! Very sad to hear this!https://t.co/qQ3wrWDaX4

— Pablo J Barillas (@PabloJBarillas) November 2, 2024

Here’s what CNN reported:

TGI Fridays Inc., the American casual dining chain, filed for Chapter 11 bankruptcy protection Saturday.

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The company said in a statement that fallout from the Covid-19 pandemic was the “primary driver of our financial challenges” and it will use the Chapter 11 process to “explore strategic alternatives in order to ensure the long-term viability of the brand.”

“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,” Rohit Manocha, TGI Fridays’ executive chairman, said in a statement.

The bankruptcy affects TGI Fridays’ parent company, which operates 39 restaurants, and not the franchisees that control the remaining locations. The company has secured financing so all restaurants will operate as usual while it navigates the bankruptcy process.

TGI Friday’s filed for bankruptcy protection after struggling to turn around the restaurant business https://t.co/qrYqZ0UMkw

— Bloomberg (@business) November 2, 2024

Per Newsweek:

TGI Fridays Inc., owner and operator of 39 domestic restaurants in the casual dining chain, filed for Chapter 11 bankruptcy protection in the Northern District of Texas, marking another setback for America’s struggling restaurant industry.

The filing comes at a critical time for the nearly 60-year-old chain, which has already closed 50 locations last week, bringing its total U.S. presence down to 163 restaurants from approximately 270 at the start of 2024.

The brand’s intellectual property, owned by TGI Fridays Franchisor, LLC through a securitization agreement with a separate investor group, is notably excluded from the bankruptcy proceedings.

Newsweek contacted TGI Fridays’ press contact via email on Saturday for comment.