The company filed for Chapter 11 bankruptcy protection on Saturday but said its restaurants would remain open while it works on a “restructuring process.”
TGI Fridays Inc., the casual American dining chain that for more than half a century served customers happy-hour deals, hamburgers and comfort-food appetizers like mozzarella sticks and loaded potato skins, filed for bankruptcy protection on Saturday.
The Dallas-based company filed for Chapter 11 bankruptcy in the Northern District of Texas to begin a “restructuring process” to ensure the “long-term viability of the brand,” according to a company statement.
The move comes as the company struggles with financial challenges brought, in part, by the Covid-19 pandemic, Rohit Manocha, the executive chairman of TGI Fridays Inc., said in the statement.
All 39 restaurants in the United States that the company owns and operates will remain open. Locations owned by 56 independent franchisees are not included in the bankruptcy filing, the company said.
The company estimated both its assets and its liabilities are between $100 million and $500 million, according to court filings.
TGI Fridays, which stands for Thank God It’s Friday, opened in 1965 in Manhattan. It became popular for creating an environment of flirtation at its happy hours, which catered to single people, and for its large portions.
In 2007, the company changed its menu and began offering smaller portions for lower prices, a move that proved popular with customers.
The pandemic, though, proved to be a challenge for restaurant chains like TGI Fridays that have large real estate footprints. The chain has more than 461 restaurants in 41 countries. Since the pandemic, customers’ appetites have shifted to faster, cheaper food.
In October, Bloomberg reported that TGI Fridays Inc. was seeking financing to prepare for a potential bankruptcy filing.
TGI Fridays, which dropped the apostrophe in its logo in 2013, is privately owned by TriArtisan Capital Advisors, a New York-based private equity firm. TriArtisan did not immediately respond on Saturday to an email seeking additional comment.
The restaurant chain was a cultural touchstone of American casual dining for decades.
Famous for its brightly colored beverages, TGI Fridays said its bartenders trained the actor Tom Cruise to make drinks for the 1988 film “Cocktail.” It also takes credit for having popularized the Long Island Iced Tea.
Fridays, as the chain is sometimes called, is not the only casual sit-down restaurant chain that has struggled recently.
Buca di Beppo, an Italian casual dining chain with more than 80 locations, many in California, filed for Chapter 11 bankruptcy in August. Red Lobster filed for bankruptcy in May and exited Chapter 11 bankruptcy protection in September, The Associated Press reported.
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