Bad news for fans of the $5 happy hour: TGI Friday’s announced in an official statement on Saturday that the company has filed for voluntary Chapter 11 bankruptcy protection in a Texas federal court. Rohit Manocha, Executive Chairman of TGI Fridays Inc., cited the pandemic as one of the major forces working against the once hugely popular chain. Court documents indicate that the company owes between $100 million and $500 million to at least 1,000 and as many as 5,000 creditors.
“The primary driver of our financial challenges resulted from COVID-19 and our capital structure,” Manocha said in the company’s official company statement. “This restructuring will allow our go forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”
The news might not be a total surprise to Fridays customers as the company has been shuttering stores throughout 2024, including 36 locations in January and another 49 stores in October. This new development will affect the remaining 39 domestic restaurants owned and operated by TGI Fridays’ parent company, private equity firm TriArtisan Capital Advisors, which is based in Dallas, Texas.
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Franchise Locations Will Not Be Affected
It’s not all bad news, however, for followers of the self-proclaimed “world’s first casual bar and grill,” which came on the scene in 1965 in Manhattan as the city’s first singles bar. The bankruptcy filing doesn’t impact franchise locations. Those are controlled by a separate company, TGI Fridays Franchisor, which oversees 56 independent owners in 41 countries. So, barring any unknown financial setbacks, those restaurants are safe from closing at the moment.
Fridays followers living near any of the locations that will be affected by the bankruptcy can also hold on to at least a little hope. The company said in its announcement that it secured the funds to stay open through the Chapter 11 process, so you can still get your Philly Cheesesteak Eggrolls for now. It stands to reason that at least some additional locations will be closed or sold in the coming months as the company works to restructure its debt, however, so if you love a good piece of flair and a plate of potato skins (which TGI Fridays may or may not have invented), get your happy hours logged in ASAP before your local Fridays is no more.
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