https://www.usatoday.com/story/money/2024/11/01/tgi-fridays-bankruptcy-reports-wsj/75990780007/
The corporation filed for bankruptcy Saturday with the United States Bankruptcy Court for the Northern District of Texas in Dallas, citing the COVID-19 epidemic as one of its economic concerns. The filing covers 39 TGI Fridays stores in the United States, which are owned by TGI Fridays Inc. "The primary driver of our financial challenges resulted from COVID-19 and our capital structure," said Rohit Manocha, executive chairman of TGI Fridays Inc., in a statement. "This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential." As the bankruptcy processes continue, the 39 stores will stay open and operating normally. Other locations—there are over 160 in the United States and others internationally—along with the TGI Fridays brand and TGI Fridays Franchisor has signed a transition services agreement with TGI Fridays Inc. and granted interim finance to the company "to maintain support services for franchisees" until a "new long-term support structure" is developed, the companies stated. In its bankruptcy petition, TGI Fridays Inc. reported assets and liabilities ranging from $100 million to $500 million. TGI Friday's closed their locations earlier this year. In January, TGI Fridays closed several dozen "underperforming" stores across 12 states. TGI Fridays is privately held by TriArtisan Capital Advisors and has grown since its initial location in Manhattan, New York, in 1965. TGI Fridays has experienced comparable issues to Red Lobster, which has recently begun its recovery from bankruptcy: increased competition and cost-conscious customers. "The next actions were announced.
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