TGI Fridays Bankruptcy Move Attributed to COVID Fallout
Company proposes to use the breather to explore strategic alternatives to ensure the brand’s long-term viability
The Chapter 11 bankruptcy protection that American casual dining chain TGI Fridays, Inc., is attributed to the lingering effects of the COVID-19 pandemic.
The company said that the fallout of the COVID-19 pandemic was the “primary driver of our financial challenges,” and it will use the Chapter 11 process to “explore strategic alternatives in order to ensure the long-term viability of the brand,” according to a CNN report Saturday.
“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 report said quoting a statement of Rohit Manocha, TGI Fridays’ executive chairman.
The report said the bankruptcy will affect TGI Fridays’ parent company that operates 39 restaurants, and not the franchisees that control the remaining locations. The company has secured financing so all restaurants will operate as usual while it navigates the bankruptcy process.
