Lhe American restaurant chain TGI Fridays placed itself on Saturday under the famous Chapter 11 regime of the American bankruptcy law, in the state of Texas, it indicated in a press release.
The group, known for its signature burgers, chicken wings and cocktails, announced that its dozens of restaurants in the United States and abroad would remain open.
The restructuring procedure aims to “explore strategic alternatives to ensure the long-term viability of the brand,” the group explained in the press release.
TGI Fridays Inc, which filed for bankruptcy, owns and operates 39 restaurants in the United States.
The Chapter 11 process does not concern the brand’s 56 franchised restaurants in the United States, nor the 40 others in different countries, which are managed independently, the company said.
“The steps announced today are difficult but necessary to protect the interests of our stakeholders, including our national and international franchisees as well as our valued employees across the world,” underlined Executive Chairman Rohit Manocha, quoted in the press release. .
Mr. Manocha cited the covid pandemic and the company’s capital structure as the main reasons for these financial difficulties.
“This restructuring will allow our restaurants to continue their operations with an optimized infrastructure, giving them the ability to reach their full potential,” he added.
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