TGI Fridays Inc., the iconic casual dining spot we all know and love for its burgers, loaded potato skins, and those killer $5 happy hour drinks, has just filed for Chapter 11 bankruptcy in Texas. But before you start mourning your Friday night rituals, here’s a quick little break down.
The Dallas-based chain, which has been a staple for over 50 years, is still feeling the aftershocks of the COVID-19 pandemic. According to the company’s executive chairman, Rohit Manocha, they’ve been navigating some tough waters and haven’t quite bounced back. The filing was made to “address legacy liabilities and position restaurants for long-term success.” So what exactly does that mean? Basically, they’re looking to get their financial house in order while keeping the doors open at 39 of their corporate-owned spots.
In a recent press release, TGI Fridays laid it all out. They’ve got assets and liabilities ranging from $100 million to $500 million… But here’s the silver lining: all 56 of their franchise locations across 41 countries are still operating independently, so your local Fridays may not be going anywhere.
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The company is ultimately using this Chapter 11 restructuring as a chance to rethink and realign. They’re hoping to explore some strategic alternatives to ensure the brand’s long-term viability. It’s all about protecting the interests of their stakeholders, including franchisees and the team members who serve us those mouth-watering meals.
“The primary driver of our financial challenges resulted from COVID-19 and our capital structure,” Manocha said according to Fox32 Chicago. This restructuring is set to optimize their corporate infrastructure, which should empower their restaurants to hit new heights.
What’s more? TGI Fridays has secured debtor-in-possession financing, which means they’ve got the funds to keep the lights on while they navigate this tricky process. They currently operate over 461 restaurants worldwide, serving up classic American dishes and drinks that are anything but ordinary.
So, while the news may sound a little grim, it’s not the end of the road for TGI Fridays. They’re taking the necessary steps to ensure they can keep serving up those beloved meals and drinks for years to come.
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