US casual dining chain TGI Fridays files for bankruptcy, franchises will continue operations

American casual dining chain TGI Fridays Inc. filed for bankruptcy protection on Nov. 2.

The chain currently has more than 461 restaurants in 41 countries, 39 of which are in the U.S. It opened in Manhattan, New York, in 1965.

The company faced prolonged financial challenges, including pressures from increasingly cost-conscious consumers, Bloomberg reported.

It filed a bankruptcy petition on Nov. 2 in the Northern District of Texas.

Company plans to restructure for long-term viability

"The primary driver of our financial challenges resulted from Covid-19 and our capital structure," TGI Fridays’ executive chairman Rohit Manocha said in a statement.

"This restructuring will allow our go-forward restaurants to proceed with an optimised corporate infrastructure that enables them to reach their full potential," he added.

The company said it has also secured a commitment for debtor-in-possession financing, which will support operations during the restructuring process.

Normal operations will continue in all franchise locations both in the U.S. and internationally, with TGI Fridays saying that its 56 franchisees in 41 countries are "independently owned" and not part of the restructuring process.

Thus, the franchise locations are "open and serving customers as usual".

There have been three TGI Fridays outlets in Singapore, with the first opening in Penang Road in 1992.

Two other branches opened in Orchard Road and East Cost Road in 2017.

All three outlets closed within two years of their launch.

In 2022, the chain previously announced plans to open four restaurants in Singapore.

It currently has several restaurants in Malaysia, including one in Johor Bahru.

Top photo via Google Maps