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After closing dozens of locations nationwide over the past several months, including 15 in New Jersey, TGI Fridays is seeking Chapter 11 bankruptcy protection.

In a Nov. 2 filing in U.S. Bankruptcy Court Northern District of Texas, the casual dining chain said it never fully recovered from the pandemic and hopes to use the process “to explore strategic alternatives in order to ensure the long-term viability of the brand.”

According to TGI Fridays, the filing encompasses its 39 corporate-owned locations. It does not include restaurants operated by franchisees in the U.S. and internationally.

In its petition, the Dallas-based company listed between 1,000 and 5,000 creditors. It also reported both assets and liabilities between $100 million and $500 million. TGI Fridays also said it secured financing so all outposts – whether controlled by the company or franchised – can operate as usual while the Chapter 11 process plays out.

As part of a transition services agreement with the TGI Fridays Franchisor, the company said it will provide interim funding “to maintain support services for franchisees” while a new “long-term support structure” is devised.

Next steps

In a statement, Rohit Manocha, TGI Fridays executive chairman, said, “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.”

“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,” he said.

Founded in New York City nearly 60 years ago, TGI Fridays evolved from a laid-back singles bar into a popular chain with locations around the world.

However, as consumers shift away from legacy casual dining brands, TGI Fridays is facing a slowdown in sales. As a result, it has closed half of its U.S. locations over the past decade.

When the company announced plans in January to shut down “underperforming locations,” it said it was part of a move to bolster finances and streamline operations.

Since then, its footprint has dropped from 269 restaurants in the U.S. to 163 outposts nationwide. Globally, there are 461 TGI Fridays-branded locations.

Locally, TGI Fridays has gone dark in Bridgewater, Cherry Hill, North Brunswick, Piscataway, Watchung, Hackensack, Wayne, Iselin/Woodbridge, Eatontown, Springfield, Princeton, Marlton/Evesham, Franklin, East Brunswick and Old Bridge.

It continues to operate in Manahawkin, Linden, Turnersville, Burlington Township, West Orange, Toms River, East Windsor and Brick.

Other recent Chapter 11 filings:

• Franchise Group
• CarePoint Health
• True Value
• Big Lots