(WJET/WFXP) -- TGI Friday's, the well-known bar and grill restaurant, has filed for bankruptcy protection amid ongoing financial turmoil for the restaurant chain.
TGI Friday's is the latest company to file for bankruptcy, joining a growing list of companies that have done so this year. Big Lots, True Value, and Red Lobster are among the largest companies to file this year. Many of these companies have struggled to recover after the COVID-19 pandemic, as well as rising inflation and labor costs, and a major shift in customer spending habits.
According to court documents, TGI Friday's holds between $100 million and $500 million in assets and owes 1,000 - 5,000 creditors a similar amount.
In a press release, the company announced it has secured funding to ensure that all restaurant locations remain open and operate as normal during the restructuring process.
"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," said Rohit Manocha, Executive Chairman of TGI Fridays Inc. "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."
TGI Fridays has franchised its brand to 56 franchisees across 41 countries; these franchises are independently owned and operated and are not included in the Chapter 11 process. In addition, TGI Friday's Inc. owns and operates 39 locations in the United States.
Bloomberg reported earlier this month that the company was seeking new financing as it prepared to file for bankruptcy protection. Over the past several months, the chain has also shuttered nearly 50 locations. These closures follow the company's decision to close 36 underperforming locations in January.