Restaurant chain TGI Fridays filed for bankruptcy protection on 2 November, following the actions of Red Lobster and other chains that have filed for bankruptcy this year.
Despite attempts to revamp its brand, including increasing seafood and sushi offerings, making itself a hub for ghost kitchen operations during the Covid-19 pandemic, and other strategic efforts, Dallas, Texas, U.S.A.-based TGI Fridays filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Texas.
Seafood suppliers and distributors were not named in the company’s list of its top 23 debtors, but some are still expected to file claims since the company features numerous seafood appetizers and entrees on its menu.
"The next steps … 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," TGI Fridays Executive Chairman Rohit Manocha said. ”The primary driver of our financial challenges resulted from Covid-19 and our capital structure.”
The Chapter 11 restructuring process will allow the company’s restaurants “to proceed with an optimized corporate infrastructure that enables them to reach their full potential,” Manocha said, adding that the filing allows the company to …
