Hardy: Local TGI Fridays restaurants unaffected by US bankruptcy petition

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TGI Fridays restaurant. - Photo courtesy Prestige Holdings Ltd

LOCAL franchise holder of TGI Fridays, which has three restaurants in Trinidad, says the decision of the parent company to file for bankruptcy protection in the US on November 2 will not affect local branches.

CEO of Prestige Holdings Ltd Simon Hardy, franchise holder for TGI Fridays, said the bankruptcy will only affected the 39 US stores directly operated by TGI Fridays, not other local or international franchisees.

“We continue to operate the brand successfully. This is something I’m sure the US business will work through. And we will see updates as you see them, through the news,” Hardy said in a telephone interview.

The American restaurant chain filed for bankruptcy protection on November 2 saying it was having “financial challenges” since the covid19 pandemic and never fully recovered.

According to a CNN report, the company had 270 US locations last year but abruptly shut down dozens of locations in January and 50 last week.

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The parent company said it secured financing so all its restaurants would operate as usual while it the handled the bankruptcy process.

The company said in a statement that fallout from the covid19 pandemic was the “primary driver of our financial challenges” and it will use the Chapter 11 process to “explore strategic alternatives in order to ensure the long-term viability of the brand.”

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

According to a CNN report, the company has secured financing so all restaurants will operate as usual while it navigates the bankruptcy process.

TGI Fridays got its start in 1965 in Manhattan as a place for singles to meet each other and was one of the first major chains to promote the “happy hour” concept. The menu features a wide array of American comfort food staples, including chicken wings, potato skins and hamburgers.