TGI Fridays CEO Brandon Coleman III reacts to McDonalds reportedly elevating its franchise royalty payment for the primary time in 30 years on The Claman Countdown.
Informal eating chain TGI Fridays Inc. filed for Chapter 11 bankruptcy in Texas on Saturday with the corporate’s govt chairman saying it nonetheless has not absolutely recovered from the COVID-19 pandemic.
The bar and grill chain, recognized for serving up hamburgers, loaded potato skins and $5 glad hour drinks, stated the transfer was performed to “tackle legacy liabilities and place eating places for long-term success,” the corporate stated in a press launch.
The Dallas-based firm says 39 of its corporate-operated home eating places would stay open. TGI Fridays is brief for “Thank God it is Friday.”
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TGI Fridays has closed its longtime restaurant on Route 38 in Cherry Hill. (Jim Walsh/Courier-Put up / USA TODAY NETWORK by way of Imagn Pictures / IMAGN)
Moreover, the corporate has franchised the model to 56 franchisees in 41 nations. All of those franchise locations, each home and worldwide, are independently owned and due to this fact not included in TGI Fridays Chapter 11 course of, the corporate stated.
The corporate says it expects to make use of the time and authorized protections made out there via the Chapter 11 restructuring course of to discover strategic alternate options with a purpose to make sure the long-term viability of the model.
“The following steps introduced right this moment are tough however essential actions to guard the perfect pursuits of our stakeholders, together with our home and worldwide franchisees and our valued group members world wide,” TGI Fridays Inc govt chairman Rohit Manocha stated in an announcement.Â
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A shuttered TGI Fridays retailer in Princeton, New Jersey (Getty Pictures/Photograph illustration / Getty Pictures)
“The first driver of our monetary challenges resulted from COVID-19 and our capital construction. This restructuring will enable our go-forward eating places to proceed with an optimized company infrastructure that permits them to achieve their full potential.”
The Firm says it has secured a dedication for debtor-in-possession financing to assist operations whereas continuing via the Chapter 11 course of.
The TGI Fridays model and associated mental property aren’t included within the Chapter 11 submitting resulting from a securitization settlement with a separate investor group, the corporate says.Â
The corporate closed 12 U.S. places and shuttered 35 eating places overseas in current weeks.
In January, the model closed 36 of its restaurants throughout the U.S. which had been “underperforming,” claiming it was a part of a long-term development technique to make sure viability.
A picture of the signal for T.G.I Fridays in New York (Bruce Bennett/Getty Pictures / Getty Pictures)
It additionally bought eight of its corporate-owned eating places to its former CEO Ray Blanchette that month, with the corporate including that this “period of transformation” will assist drive continued income for the chain.
TGI Fridays has been serving its prospects for greater than 50 years.
The corporate says it at the moment operates greater than 461 eating places in 41 nations serving “high-quality, traditional American meals and iconic drinks backed by genuine and real service.â
Fox Informationâ Kristen Altus and Daniella Genovese contributed to this report.
