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Famous American restaurant chain declares bankruptcy
In a statement released Saturday, “TGI Fridays” stated that business had filed for Chapter 11 bankruptcy protection in Texas.
Chapter 11 allows firms to reorganize and restructure their debts under court supervision while continuing operations.
Famous for its burgers, chicken wings, and cocktails, the chain announced that its hundreds of US and international locations will continue to operate.
The group stated that the restructure will “explore strategic alternatives to ensure the long-term continuity of the brand.”
“TGI Fridays Inc.”, which filed for bankruptcy, owns 39 US restaurants.
The company said the Chapter 11 protection request does not apply to the 56 franchised US restaurants or the 40 independent eateries in several countries.
CEO Rohit Manocha said, “the steps announced today are difficult but necessary to protect the interests of our stakeholders, including our franchisees in the US and internationally, as well as our valued employees around the world.”
The Covid-19 epidemic and the company’s financing structure are the key causes of these financial issues, Manocha said.
He said “this restructuring process will allow the restaurants (the chain) to continue their operations with improved infrastructure, which will enable them to benefit from their full potential.”
