TGI Friday’s (referred to as TGIF), a popular American family restaurant, has filed for bankruptcy protection (Chapter 11) with the court due to financial difficulties in the United States.
TGIF said in a press release on the 2nd (local time) that it has submitted a voluntary petition to the court under Chapter 11 of the Bankruptcy Act (Chapter 11) to address existing debt and lead the restaurant to long-term success.
The U.S. federal bankruptcy law “Chapter 11” is a procedure for companies to readjust their debts while continuing to operate under court supervision.
TGIF explained, “All restaurants will remain open and serve customers as usual.”
“The main cause of financial difficulties stems from COVID-19 and our capital structure,” TGIF Chairman Rohit Manocha said. “This restructuring will allow us to build an optimized corporate base going forward.”
However, this bankruptcy protection application is limited to US corporations that own and operate 39 restaurants in the United States. TGI Fridays Franchiser, LLC, which owns world-class franchise brands and intellectual property rights, is not included. This corporation owns the rights of franchise brands that have sold to 56 businesses in 41 countries.
In the United States, large-scale restaurant companies have recently filed for bankruptcy protection.
Red Lobster, a seafood restaurant chain that was popular for menus such as lobsters and shrimp, also filed for bankruptcy protection and was approved by the court in September.
Italian-style chain Buka Di Beppo, fish tacos chain Rubios Coastal Grill, and Mexican restaurant chain Tijuana Platts are also among the companies that filed for bankruptcy protection this year.
Founded in 1965, TGIF’s popularity peaked in 2008 with 601 restaurants and $2 billion in sales, according to Kevin Simp, head of research at industrial research firm Technomick, AP reported.
SALLY LEE
US ASIA JOURNAL
