TGI Fridays has filed for chapter to “place [its] eating places for long-term success,” the informal eating restaurant chain introduced Saturday.
The self-described “birthplace of enjoyable, freedom and celebration” filed for Chapter 11 safety in a Texas federal courtroom early Saturday in a bid to permit the corporate to “discover strategic alternate options to make sure viability to long run of the corporate. model.”
The chapter will solely have an effect on the 39 eating places owned and operated by TGI Fridays Inc. All franchised shops working in 41 nations will proceed to serve prospects as regular.
The “troublesome and obligatory measures” introduced Saturday by the Dallas-based firm are designed to guard the pursuits of franchisees, each in america and overseas, stated Rohit Manocha, the corporate's chief govt.
“The primary driver of our monetary challenges was COVID-19 and our capital construction,” Manocha stated. “This restructuring will enable our future eating places to maneuver ahead with a streamlined company infrastructure that permits them to achieve their full potential.”
Rumors of a doable chapter submitting have been circulating on enterprise information websites and restaurant commerce publications for weeks, fueled by restaurant closures throughout america over the previous few months, a number of of which have been situated in New York, New Jersey and Connecticut.
Earlier this week, Restaurant Enterprise reported that “the struggling informal restaurant chain [had] “We closed about 100 places this yr amid plenty of challenges.”
Saturday's announcement comes as a rising variety of high-profile informal eating restaurant chains within the U.S. wrestle to adapt to what seems to be a brand new panorama within the service trade within the U.S., whereas Rising menu costs proceed to discourage prospects.
In Might, seafood restaurant chain Pink Lobster Early filed for chapter after closing dozens of its places. The corporate emerged from Chapter 11 safety 4 months later, after a choose accepted the corporate's reorganization plan in early September.
Early final week, restaurant chain Denny's introduced it could shut 50 of its underperforming eating places by the tip of 2025, and on Friday, quick meals large Wendy's introduced plans to shut about 140 “underperforming” eating places. ” by the tip of 2025. finish of the yr.
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