TGI Fridays Inc., the casual dining restaurant chain, filed for Chapter 11 bankruptcy Saturday. The company said the COVID-19 pandemic was the “primary driver of our financial challenges,” in a recent statement. The Chapter 11 restructuring process will allow TGI Fridays “to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”
“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,” said Rohit Manocha, Executive Chairman of TGI Fridays Inc. in the statement.
TGI Fridays has “secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process,” the statement specified. The company also filed motions with the Bankruptcy Court in the Northern District of Texas, which will allow it to “continue its customer programs in the normal course” when approved.
Back in January, TGI Fridays closed 36 “underperforming” locations in 12 states and has since continued shutting down more restaurants across the nation. The company closed 50 locations last week. Its total restaurant count is now 163, compared to 270 locations prior to the mass shutdowns.
TGI Fridays follows in the footsteps of Red Lobster and Buca di Beppo chains, which filed for Chapter 11 bankruptcy in the past months. In September, Red Lobster received court approval for its restructuring plan to continue operating under a new firm, RL Investor Holdings LLC. And as of Nov. 5, Buca di Beppo also received court approval to be sold out of bankruptcy to the Houston-based firm Main Street Capital for $27 million.
