Current:Home > StocksTradeEdge-TGI Fridays files for bankruptcy; restaurants remain open amid restructuring -FundPrime
TradeEdge-TGI Fridays files for bankruptcy; restaurants remain open amid restructuring
Fastexy View
Date:2025-04-09 19:24:03
TGI Fridays,TradeEdge a favorite casual dining destination, has filed for Chapter 11 bankruptcy protection.
Citing the COVID-19 pandemic among its business challenges, the company filed for bankruptcy Saturday with the U.S. bankruptcy court for the Northern District of Texas in Dallas. The filing encompasses 39 U.S. TGI Fridays locations owned by TGI Fridays Inc.
"The primary driver of our financial challenges resulted from COVID-19 and our capital structure," said Rohit Manocha, the executive chairman of TGI Fridays Inc., in a press release. "This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."
The 39 locations will remain open, operating as usual, as the bankruptcy proceedings move forward. Other locations – there are more than 160 in the U.S. and others internationally – along with the TGI Fridays brand and intellectual property are owned by another entity, TGI Fridays Franchisor, LLC. Those locations remain open, too, the company said.
TGI Fridays Franchisor has negotiated a transition services agreement with TGI Fridays Inc., and provided interim funding to the company, "to maintain support services for franchisees" while a "new long-term support structure" is devised, the companies said.
In its bankruptcy filing, TGI Fridays Inc. listed assets and liabilities each in the range of $100 million to $500 million.
'Fantastical Forest':Target transforms stores to kick off holiday shopping season
TGI Friday's closed locations earlier this year
Back in January, TGI Fridays closed several dozen "underperforming" locations in 12 states. Privately owned by TriArtisan Capital Advisors, TGI Fridays grew from its first location opened in Manhattan, New York, in 1965.
TGI Fridays has faced similar challenges to that of Red Lobster, which recently began its emergence from bankruptcy: increased competition and cost-conscious diners.
"The next steps announced today 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," Manocha said.
Contributing: Reuters.
Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.
What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day
veryGood! (6691)
Related
- What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
- Texas man accused of supporting ISIS charged in federal court
- Watch out, Temu: Amazon Haul, Amazon's new discount store, is coming for the holidays
- More human remains from Philadelphia’s 1985 MOVE bombing have been found at a museum
- FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
- Jake Paul's only loss led him to retool the team preparing him to face Mike Tyson
- Manhattan rooftop fire sends plumes of dark smoke into skyline
- Jamie Lee Curtis and Don Lemon quit X, formerly Twitter: 'Time for me to leave'
- Sam Taylor
- Businesses at struggling corner where George Floyd was killed sue Minneapolis
Ranking
- Bodycam footage shows high
- Falling scaffolding plank narrowly misses pedestrians at Boston’s South Station
- It's Red Cup Day at Starbucks: Here's how to get your holiday cup and cash in on deals
- Jennifer Lopez Gets Loud in Her First Onstage Appearance Amid Ben Affleck Divorce
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Mike Tyson employs two trainers who 'work like a dream team' as Jake Paul fight nears
- New Orleans marks with parade the 64th anniversary of 4 little girls integrating city schools
- Smithfield agrees to pay $2 million to resolve child labor allegations at Minnesota meat plant
Recommendation
'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
The state that cleared the way for sports gambling now may ban ‘prop’ bets on college athletes
Texas man accused of supporting ISIS charged in federal court
Brianna LaPaglia Addresses Zach Bryan's Deafening Silence After Emotional Abuse Allegations
Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
Amazon's 'Cross' almost gets James Patterson detective right: Review
High-scoring night in NBA: Giannis Antetokounmpo explodes for 59, Victor Wembanyama for 50
'America's flagship' SS United States has departure from Philadelphia to Florida delayed