TGI Fridays seeks bankruptcy protection in both the US and UK | UK News
Restaurant chain TGI Fridays has officially filed for bankruptcy protection in the United States.
The filing was made by TGI Fridays Inc, the American arm of the casual dining brand based in Dallas, which currently operates 39 restaurants in the US.
This move comes as a result of financial difficulties faced by the company due to the impact of the COVID-19 pandemic, as well as the collapse of a deal for the US arm to be sold to its UK counterpart.
Despite the bankruptcy filing, TGI Fridays Inc has confirmed that its 39 branches will remain open as it has secured financing to support its operations.
In the bankruptcy court filing in Texas, the company listed assets and liabilities in the range of $100m to $500m.
Rohit Manocha, executive chairman of TGI Fridays Inc, explained, “The challenges we faced were primarily due to COVID-19 and our capital structure. This restructuring will allow our restaurants to operate efficiently and reach their full potential.”
The 39 US-based restaurants are just a fraction of the 461 TGI Friday’s locations worldwide.
Another entity, TGI Fridays Franchisor, holds the intellectual property rights and licenses the brand to 56 independent owners across 41 countries.
These global branches, including those in the UK, will also remain open for business.
The UK franchise was previously operated by Hostmore before entering administration, putting jobs and outlets at risk. However, a sale to private investment companies saved 2,400 jobs and saw 51 restaurants in the UK remain open.
Prior to this, a proposed sale of TGI Fridays Inc to Hostmore fell through, leading to the US firm losing control of crucial revenue streams.
Since its peak in popularity in 2008, TGI Fridays has seen a decline in sales and restaurant closures, reflecting broader challenges faced by sit-down chain restaurants in recent years.
