TGI Fridays Inc., the owner and operator of 39 domestic restaurants in the iconic American casual dining bar and grill chain, filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the Northern District of Texas (Case No. 24-80069). The company reported that it intends to run a marketing process for the sale of substantially all assets.
TGI Fridays Franchisor, LLC, the owner of the TGI Fridays brand and related intellectual property, has franchised the brand to franchisees operating approximately 436 locations in the U.S. and internationally, all of which are independently owned. TGI Fridays Franchisor, LLC and the franchise locations are not included in TGI Fridays Inc.'s Chapter 11 process. In the short-term, TGI Fridays Inc. will continue to provide certain corporate and support services for the benefit of the franchisees.
Among the relief sought by the company in its "First Day Motions" is authority to reject numerous executory contracts and unexpired leases. Landlords and other contract counterparties should follow the case closely to protect their rights.
TGI Fridays Files for Chapter 11 Bankruptcy - The New York Times
The pandemic, though, proved to be a challenge for restaurant chains like TGI Fridays that have large real estate footprints. The chain has more than 461 restaurants in 41 countries. Since the pandemic, customers' appetites have shifted to faster, cheaper food.
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