TGI Fridays Inc., the popular casual dining chain, filed for Chapter 11 bankruptcy protection in Texas, citing approximately $151 million in debt and ongoing fallout from the COVID-19 pandemic. With this restructuring, TGI Fridays aims to stabilize its finances and explore strategic options that will preserve the brand’s future.
TGI Chain Hits Chapter 11 : Strategic Restructuring for TGI Fridays’ Future
The company filed for bankruptcy on Saturday, explaining in court documents that its goal is to identify “strategic alternatives” to ensure long-term brand sustainability. TGI Fridays’ Executive Chairman Rohit Manocha highlighted that the bankruptcy process will allow the chain to “optimize corporate infrastructure” and enable its restaurants to perform at full potential as they navigate changing market demands.
Founded in 1965, TGI Fridays currently owns 39 restaurants and licenses an additional 438 franchises worldwide. However, the brand’s financial structure, coupled with the pandemic’s lasting impact on the dining industry, has created significant challenges. The company’s debt consists of $46.75 million in secured liabilities and $104 million in general unsecured claims.
Debtor-in-Possession Financing and Advisory Support
To support its operations during bankruptcy, TGI Fridays is seeking court approval for $5.9 million in new debtor-in-possession (DIP) financing. This funding would allow the company to cover operational expenses while it restructures. Additionally, TGI Fridays has enlisted Berkeley Research Group as its financial adviser to guide the restructuring process.
TGI Chain Hits Chapter 11 : Legal Representation and Future Plans
The legal team representing TGI Fridays in the Chapter 11 proceedings includes Chris L. Dickerson and Rahmon J. Brown of Ropes & Gray LLP, as well as Holland N. O’Neil, Mark C. Moore, and Zachary C. Zahn of Foley & Lardner LLP.
