Connect with us

Hi, what are you looking for?

Smart Income LibrarySmart Income Library

Business

TGI Fridays operator files for Chapter 11 bankruptcy amid financial woes

TGI Fridays, an American casual dining chain, said on Saturday that it has filed for Chapter 11 bankruptcy protection after grappling with prolonged financial challenges and a collapsed deal with UK-based Hostmore.

In a filing with the U.S. bankruptcy court for the Northern District of Texas, the company listed both assets and liabilities in the range of $100 million to $500 million.

Privately owned by TriArtisan Capital Advisors, TGI Fridays has been a beloved dining destination since its inaugural bar opened in Manhattan, New York, over five decades ago, in 1965.

TGI Fridays, owner and operator of 39 domestic “Thank God it’s Friday!” restaurants, said it maintains operations across its corporate-owned ‘happy hour’ dining places in the U.S., adding that it has secured a financing commitment to support operations.

Rohit Manocha, executive chairman of TGI Fridays, said: “The primary driver of our financial challenges resulted from COVID-19 and our capital structure.

“This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”

In September, British restaurant operator Hostmore dropped plans to buy TGI Fridays after it was removed as the manager of TGIF Funding, which owns the right to collect royalties from the restaurant chain franchise.

Hostmore, which operated TGI Fridays in Britain through its unit Thursdays (UK), saw its shares crash 90% after the news, and later announced its intention to enter administration, overwhelmed by debt.

This post appeared first on NBC NEWS

You May Also Like

Politics

Former independent presidential candidate Robert F. Kennedy Jr. is back in the headlines — not for suspending his campaign last week and endorsing Republican...

Editor's Pick

In this edition of StockCharts TV‘s The Final Bar, Dave kicks off a five-part series covering ten charts to watch in August 2024, starting with two...

Tech News

Image: Sony Sony has announced the $59.99 WF-C510 wireless earbuds, the latest budget offering in its “Truly Wireless” line. They’re fairly bare-bones but improve...

Politics

CHICAGO — In 2016 Hillary Clinton addressed the Democratic National Convention as the barrier-busting standard-bearer — the presidential nominee who many supporters felt was...