TGI Fridays Files for Chapter 11 Amid Economic Turbulence

TGI Fridays has filed for Chapter 11 bankruptcy protection due to financial difficulties and a collapsed acquisition deal with UK-based Hostmore. Operating since 1965, the company continues to serve at its U.S. locations while securing financial backing to maintain operations amid ongoing restructuring efforts.

TGI Fridays, the well-known American casual dining chain, has entered Chapter 11 bankruptcy proceedings in response to persistent financial struggles and the breakdown of a merger deal with UK-based Hostmore.

In documents submitted to the U.S. bankruptcy court in Texas, the company outlined assets and liabilities falling between $100 million and $500 million. Despite these challenges, TGI Fridays remains operational across its U.S. 'happy hour' establishments, supported by a new financing commitment.

Executive chairman Rohit Manocha attributed the financial issues to the impacts of COVID-19 and a burdensome capital structure, expressing confidence in the restructuring process' potential to optimize operations. Meanwhile, franchised locations worldwide are unaffected by the bankruptcy process.

(With inputs from agencies.)