TGI Fridays, a U.S. casual dining chain, said Saturday it has filed for Chapter 11 bankruptcy protection after battling long-term financial challenges and a failed deal with U.K.-based Host more.
In a filing with the U.S. Bankruptcy Court for the Northern District of Texas, the company listed both assets and liabilities in the range of $100 million to $500 million.
TGI Fridays is privately held by Treatise Capital Advisors and has been a beloved dining destination since opening its first bar in Manhattan, New York, more than five decades ago in 1965.
TGI Fridays, which owns and operates 39 domestic “Thank God it’s Friday!” restaurants, said it will continue to operate its company-owned “happy hour” eateries in the U.S. and added that it has secured a financing commitment to support the operation.
Rohit Mancha, Executive Chairman of TGI Fridays, said: “The primary driver of our financial challenges was COVID-19 and our capital structure.
“This restructuring will enable our future restaurants to move forward with an optimized operating infrastructure that will allow them to reach their full potential.”
In September, British restaurant operator Host more abandoned plans to buy TGI Fridays after it was fired as manager of TGIF Funding, which holds the right to collect royalties from the restaurant chain franchise.
Host more, which operated TGI Fridays in the UK through its Thursdays (UK) unit, saw its shares fall 90% on the news and later announced its intention to enter administration, overwhelmed by debt.