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TGI Fridays has been a staple in the casual dining industry for decades, known for its delicious food, lively atmosphere, and iconic “Thank God it’s Friday!” catchphrase. The restaurant chain was founded in Manhattan in 1965 and has since grown to become a worldwide brand with locations in over 41 countries.
Despite its global success, TGI Fridays has faced challenges in recent years, including the impact of the COVID-19 pandemic and a failed partnership with Hostmore. The company’s financial difficulties came to a head on November 2, 2024, when the restaurant in Danvers, Massachusetts, was closed as the operator filed for insolvency.
With assets and liabilities ranging from $100 million to $500 million, TGI Fridays made the decision to file for Chapter 11 bankruptcy protection in order to restructure its operations and financial obligations. The company remains committed to operating 39 restaurants in the United States under new corporate leadership and a streamlined structure.
Rohit Manocha, the executive chairman of TGI Fridays, acknowledged that the impact of COVID-19 and the company’s existing capital structure were significant factors in its financial struggles. The restructuring process is aimed at positioning the remaining restaurants for long-term success and growth in the increasingly competitive dining industry.
The failed partnership with Hostmore, a UK-based restaurant operator, added to TGI Fridays’ challenges. Hostmore had planned to acquire the chain but withdrew from the deal in September, leading to the termination of its management of TGIF Funding, the entity responsible for collecting royalties from TGI Fridays franchisees.
Following Hostmore’s exit, its subsidiary Thursdays (UK) experienced a sharp decline in its stock price and ultimately announced plans to enter administration due to its substantial debt. As a result, 35 TGI Fridays restaurants in the UK were closed, resulting in over 1,000 job losses.
Despite these setbacks, TGI Fridays remains committed to its loyal customers and franchisees around the world. The company’s franchised locations, operated by 56 separate franchisees, are not directly impacted by the Chapter 11 filing and will continue to operate independently.
As TGI Fridays navigates through this challenging period, the company is focused on serving its signature dishes and cocktails to guests seeking a fun and welcoming dining experience. With the support of its loyal customer base and dedicated employees, TGI Fridays is optimistic about its future and looks forward to reopening more restaurants in the coming months.
