TGI Fridays, the iconic American casual dining chain, announced on Saturday that it has filed for Chapter 11 bankruptcy protection, citing prolonged financial difficulties and the collapse of a deal with UK-based Hostmore. In a filing with the US bankruptcy court for the Northern District of Texas, the company disclosed assets and liabilities ranging from $100 million to $500 million. Privately owned by TriArtisan Capital Advisors, TGI Fridays has been a cherished dining spot since its first outlet opened in Manhattan, New York, over 50 years ago in 1965.
The chain, which operates 39 domestic 'Thank God it's Friday!' restaurants, stated that it will continue to run its corporate-owned 'happy hour' dining establishments in the US. Additionally, it has secured financing to support ongoing operations. Rohit Manocha, executive chairman of TGI Fridays, attributed the financial struggles primarily to the impact of Covid-19 and the company's capital structure. He expressed optimism that the restructuring would enable the restaurants to operate with a streamlined corporate framework, allowing them to achieve their full potential.
In September, British restaurant operator Hostmore abandoned its plans to acquire TGI Fridays after being removed as the manager of TGIF Funding, which holds the rights to collect royalties from the restaurant chain franchise. Hostmore, which operated TGI Fridays in Britain through its subsidiary Thursdays (UK), saw its shares plummet by 90% following the news and later announced its intention to enter administration due to overwhelming debt. In October, the administrators of Thursdays (UK) confirmed the closure of 35 TGI Fridays restaurants in the UK, resulting in 1,012 job losses.
Following the bankruptcy announcement, the Dallas-based chain reassured that normal operations will continue at all franchise locations both in the U.S. and internationally. TGI Fridays Franchisor, which owns the brand and intellectual property, has granted franchises to 56 franchisees in 41 countries. The company emphasized that these stores are independently owned and are not part of the Chapter 11 process.
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