By Mrinmay Dey
(Reuters) – TGI Fridays, a U.S. casual dining chain, said on Saturday it filed for Chapter 11 bankruptcy protection after dealing with prolonged financial challenges and a failed deal with U.K.-based Hostmore.
In a filing with the U.S. Bankruptcy Court for the Northern District of Texas, the company listed assets and liabilities in the range of $100 million to $500 million.
TGI Fridays, privately owned by TriArtisan Capital Advisors, has been a beloved dining destination since opening its inaugural bar in Manhattan, New York more than five decades ago in 1965.
TGI Fridays, owner and operator of 39 locations “Thank God it's Friday!” restaurants, said it maintains operations at all of its corporate-owned happy hour restaurants in the U.S., adding that it has secured a financing commitment to support operations.
Rohit Manocha, CEO of TGI Fridays, said: “The main driver of our financial challenges was the result of COVID-19 and our capital structure.
“This restructuring will allow our future restaurants to move forward with a streamlined corporate infrastructure that allows them to reach their full potential.”
In September, British restaurant operator Hostmore abandoned plans to buy TGI Fridays after it was removed as administrator of TGIF Funding, which holds the right to collect royalties from the restaurant chain's franchise.
Hostmore, which operated TGI Fridays in Britain through its Thursdays (UK) unit, saw its shares fall 90% on the news, and later announced its intention to enter administration, burdened by debt.
Thursdays (UK) administrators said in October that 35 TGI Fridays restaurants in the country had been closed, resulting in the loss of 1,012 jobs.
Following Saturday's bankruptcy announcement, the Dallas-based chain said normal operations will continue at all franchises both in the United States and internationally.
TGI Fridays Franchisor, owner of the brand and intellectual property, has franchised TGI Fridays to 56 franchisees in 41 countries. The restaurant operator said those stores are independently owned and are not part of the Chapter 11 process.
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