US restaurant chain TGI Fridays files for bankruptcy
NEW YORK, NY – MARCH 24: A homeless person rests on a street as a person walks by a TGI Fridays while the streets are empty due to the coronavirus on March 24, 2020 in Queens, New York City. New York City has about a third of the nations confirmed coronavirus (COVID-19) cases, making it the epicenter of the outbreak in the United States. Eduardo Munoz Alvarez/Getty Images/AFP (Photo by EDUARDO MUNOZ ALVAREZ / GETTY IMAGES NORTH AMERICA / AFP)
Casual American dining chain TGI Fridays filed for Chapter 11 bankruptcy on Saturday in the US state of Texas, a company statement said.
The bar and grill chain — known for serving up hamburgers, chicken wings and signature cocktails — said its dozens of restaurants in the United States and abroad would remain open to customers while the company uses the restructuring process to “explore strategic alternatives in order to ensure the long-term viability of the brand.”
TGI Fridays Inc, which filed for bankruptcy, owns and operates 39 restaurants in the United States.
Not included in the Chapter 11 process are 56 franchise TGI Friday’s locations in the United States and 40 other countries, which are independently owned, the firm said.
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US restaurant chain TGI Fridays files for bankruptcy
“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 in the statement.
Manocha said the Covid-19 pandemic and the company’s capital structure were the primary reasons for its financial issues.
“This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential,” he said.
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