TGI Fridays Operator Files for Bankruptcy Due to Financial Struggles

TGI Fridays, an American casual dining chain, has filed for Chapter 11 bankruptcy protection following prolonged financial difficulties and a failed deal with UK-based Hostmore. In its filing with the U.S. bankruptcy court for the Northern District of Texas, the company reported assets and liabilities ranging between $100 million to $500 million.

Owned by TriArtisan Capital Advisors, TGI Fridays has been a popular dining destination since its first bar opened in Manhattan in 1965. Despite the bankruptcy, the chain, which operates 39 domestic "Thank God it's Friday!" restaurants, will continue its U.S. operations and has secured financing to support them.

Rohit Manocha, executive chairman of TGI Fridays, attributed the financial challenges to COVID-19 and the company's capital structure. He stated that the restructuring would enable the restaurants to optimize their corporate infrastructure and reach their full potential.

In September, Hostmore dropped plans to acquire TGI Fridays after being removed as manager of TGIF Funding, which collects royalties from the chain’s franchises. Following this, Hostmore's shares plummeted 90%, and the company announced it would enter administration due to overwhelming debt.