DALLAS (AP)– Restaurant chain TGI Fridays applied for personal bankruptcy defense Saturday, claiming it is seeking methods to “ensure the long-term viability” of the informal eating brand name after shutting a number of its branches this year.
The Dallas- based business applied for Chapter 11 personal bankruptcy defense in a Texas government court.
TGI Fridays Executive Chairman Rohit Manocha in a declaration claimed the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”
Sit- down chain dining establishments have actually much more extensively dealt with difficulties in recent times as restaurants select to obtain food supplied or see high end junk food chains like Chipotle and Shake Shack.
A united state personal bankruptcy court in September approved a reorganization plan for fish and shellfish chain Red Lobster after years of installing losses and diminishing clients.
Founded in 1965, the appeal of TGI Fridays came to a head in 2008 with 601 dining establishments in the united state and a $2 billion company, according to Kevin Schimpf, supervisor of sector research study atTechnomic Its sales in the united state were $728 million in 2023, down 15% from the previous year, according to Technomic.
It currently counts 163 dining establishments in the united state, below 269 in 2014. It shut 36 in January and lots much more in the previous week.
TGIFridays Inc claimed it just possesses and runs 39 dining establishments in the united state, which is simply a portion of the 461 TGI Friday- branded dining establishments around the globe. A different entity, TGI Fridays Franchisor, possesses the copyright and has actually franchised the brand name to 56 independent proprietors in 41 nations. Those continue to be open.
The Associated Press
