The company stated in a statement that fallout from the Covid-19 pandemic was the “primary driver of our financial challenges” and will use the Chapter 11 bankruptcy 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, stated in a statement.
TGI Fridays Statement
As per Company statement, The 39 locations will remain open and operating as usual, as the bankruptcy proceedings move forward. Apart from these there are more than 160 in the U.S. and others internationally – along with the TGI Fridays brand and TGI Fridays Franchisor, LLC. Those locations remain open.
TGI Franchisor has also secured a transition services agreement with TGI Fridays Inc., and provided funding to the company, “to maintain support services for franchisees” while a “new long-term support structure” is formulate.
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According to Reuters reported on October 31, TGIF was “running out of funds to meet its debt obligations”.
TGI Fridays History
TGI Fridays opened first time in year 1965 as a bar on Manhattan’s Upper East Side.
In recent years, it transformed into a popular suburban hangout famous place for its ribs, potato skins topped with cheese and bacon, and signature red-striped decor with Tiffany-style lamps.
The company largely expanded in 2008 with 601 restaurants in the US and a $2 billion worth business and knows as one of the first major chains to popularize the “happy hour” concept.
They also known for authentic American food and legendary drinks, served with personal service. Bringing people together to socialize and celebrate the freeing and liberating spirit of ‘Friday’ was the concept’s founding premise.
