TGI Fridays Inc, which owns and operates 39 US restaurants in the TGI Friday’s casual dining chain, on November 2 filed for bankruptcy under Chapter 11. 

The company expects to use the time and legal protections in the restructuring process to explore alternatives to ensure the long-term viability of the brand.

TGI Fridays Franchisor owns the TGI Fridays brand and related intellectual property and these entities are not part of the Chapter 11 process. The brand has 56 franchisees in 41 countries and these continue to trade.

In the US, the franchisor has negotiated a Transition Services Agreement with, and provided interim funding to, TGI Fridays Inc to maintain support services for franchisees.

In addition to supporting franchise restaurants, TGI Fridays Inc maintains operations across its corporate-owned restaurants in the US.

Rohit Manocha, executive chairman of TGI Fridays Inc, said: “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.

“The primary driver of our financial challenges resulted from Covid-19 and our capital structure. This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”

The company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process.

This story was originally published on Franchise Executives.