Are TGI Fridays locations open across the US? Everything to know as the restaurant chain files for bankruptcy protection

Casual dining destination TGI Fridays recently filed for bankruptcy protection due to a decreased demand for casual dining restaurants and increased operating costs. As per Restaurant Dive, earlier in January 2024, the restaurant chain closed down 36 underreporting restaurant locations across the US and has closed down around 60 more locations since early September.

On Saturday, November 2, the company filed for Chapter 11 bankruptcy protection. The restaurant chain assured via a press release on Saturday that all of their restaurants will remain open and continue to serve customers. The 39 domestic restaurants owned and operated by the company will continue to function despite being included in the bankruptcy filing alongside the hundreds of outlets owned by the company abroad and the outlets owned by TGI Fridays Franchisor.

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TGI Fridays currently has a debt of $37 million

As mentioned, TGI Fridays filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the Northern District of Texas. The 39 domestic restaurants owned by the company across the United States will be a part of its bankruptcy protection filing.

In a November 2 press release, the company announced that it expected to take advantage of the time and legal protection awarded by the Chapter 11 restructuring process to ensure the brand's long-term viability by exploring strategic alternatives for the restaurant chain.

However, the Chapter 11 process did not include the company's brand and related intellectual property owned by TGI Fridays Franchisor, LLC, which franchised the brand to 56 franchisees in 41 countries. TGI Fridays Inc. also negotiated a Transition Services Agreement with TGI Fridays Franchisor, LLC to maintain franchise support services while the latter worked on a long-term support structure.

According to CNN, the restaurant chain owned 270 locations worldwide before shutting down around 50 locations last week, which made the total come down to 160 at the moment. Per Reuters, the 59-year-old restaurant chain's quantity of unused gift cards far exceeded the money they had in possession. This includes the $5.9 million borrowed to fund their bankruptcy restructuring.

Per court documents obtained by Reuters, if the bankruptcy restructuring does not go well, the company will look at $49.7 million in outstanding customer gift card obligations. After a hearing on Monday, the company was allowed to continue its gift card program on an interim basis, giving the company more time to review the program and its finances before approval for the rest of bankruptcy.

Per court documents, the company had a debt of $37 million and aimed to sell assets to an outside buyer by January of next year. During the hearing on Monday, a schedule was set for the company's upcoming auction of its assets, and it was also allowed to borrow the initial $3.3 million of its aforementioned $5.9 million loan.

Rohit Manocha, Executive Chairman of TGI Fridays Inc., said in the company's press release, which dropped on Saturday:

"The next steps announced today are difficult but necessary actions to protect the best interests of our stakeholders, including our domestic and international franchisees and our valued team members around the world."

He added:

"The primary driver of our financial challenges resulted from COVID-19 and our capital structure. This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential."

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As mentioned earlier, all TGI Fridays locations that were not closed prior to the company's bankruptcy protection filing will remain open and service customers.