TGI Fridays files for bankruptcy

TGI Fridays Inc., the American casual dining chain, filed for Chapter 11 bankruptcy protection Saturday.

TGI Fridays Inc., the American casual dining chain, filed for Chapter 11 bankruptcy protection Saturday. The company said in a statement that fallout from the Covid-19 pandemic was the “primary driver of our financial challenges” and it will use the Chapter 11 process to “explore strategic alternatives in order to ensure the long-term viability of the brand.” “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,” Rohit Manocha, TGI Fridays’ executive chairman, said in a statement. The bankruptcy affects TGI Fridays’ parent company, which operates 39 restaurants, and not the franchisees that control the remaining locations. The company has secured financing so all restaurants will operate as usual while it navigates the bankruptcy process. TGI Fridays has “stopped the clock on payments of this month’s rent to landlords and other vendors, giving them breathing room to restructure,” John Bringardner, head of Debtwire, told CNN. He added that the parent company “will likely have to close or sell unprofitable locations as part of the restructuring.” TGI Fridays got its start in 1965 in Manhattan as a place for singles to meet each other and was one of the first major chains to popularize the “happy hour” concept. The menu features a wide array of American comfort food staples, including chicken wings, potato skins and hamburgers.