TGI Fridays Files for Chapter 11 Amid Global Dining Challenges

TGI Fridays, an iconic American dining chain, has filed for Chapter 11 bankruptcy due to sustained financial struggles and a failed deal with Hostmore. Despite these challenges, TGI Fridays intends to maintain operations in the U.S. with secured financing, while international franchises remain unaffected.

TGI Fridays, the popular American casual dining restaurant, announced on Saturday that it has filed for Chapter 11 bankruptcy protection. This move comes after enduring prolonged financial difficulties and a collapsed acquisition deal with UK-based Hostmore. The filing was made in the Northern District of Texas.

Owned privately by TriArtisan Capital Advisors, TGI Fridays operates 39 domestic restaurants and has been a favorite dining venue since its first bar opened in Manhattan, New York, in 1965. The company asserts that it will continue to operate its corporate-owned locations in the U.S. and has secured financing to support ongoing business activities.

Executive Chairman Rohit Manocha attributed the financial challenges to the impacts of COVID-19 and existing capital structure. He stated that the restructuring aims to optimize the corporate framework, allowing restaurants to achieve their full potential. Meanwhile, a failed acquisition by Hostmore saw the British operator's shares plummet, leading to their own financial turmoil and the closure of 35 TGI Fridays locations in the UK.

(With inputs from agencies.)