TGI Fridays Bankruptcy Hits Corporate Locations Only
TGI Fridays Bankruptcy Hits Corporate Locations Only

TGI Fridays Bankruptcy Hits Corporate Locations Only

News summary

TGI Fridays has filed for Chapter 11 bankruptcy, affecting its 39 corporate-owned locations while sparing its franchised outlets in the U.S. and abroad. The restaurant chain, which has seen a significant decline from its peak operations, blames financial struggles on the COVID-19 pandemic and high capital costs. A major concern is the $49.7 million liability in unredeemed gift cards, posing a financial risk to franchisees who rely on corporate reimbursement. Despite securing $5.9 million in bankruptcy financing, the company is grappling with potential asset sales and strategic restructuring to ensure viability. Franchise owners are worried about being 'left holding the bag' if a rush of gift card redemptions occurs. Customers are advised to use their gift cards promptly to avoid losing value amid ongoing financial uncertainty.

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Last Updated
13 days ago
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