The iconic American casual dining chain TGI Fridays has officially filed for Chapter 11 bankruptcy protection, the company announced on Saturday. The move comes after years of financial difficulties and a failed acquisition deal with UK-based Hostmore.

The bankruptcy filing was submitted to the Northern District of Texas court as the restaurant chain seeks to reorganize its business while continuing operations.

Owned by private equity firm TriArtisan Capital Advisors, TGI Fridays first opened its doors in Manhattan, New York in 1965 and has since grown into one of America's most recognizable bar-and-grill brands over its nearly six-decade history.

The company currently operates 39 corporate-owned locations across the United States under its famous "Thank God It's Friday!" branding. Despite the bankruptcy filing, TGI Fridays emphasized that all restaurants remain open and that it has secured financing to maintain normal operations during restructuring.

"The perfect storm of COVID-19 impacts combined with our existing capital structure created significant challenges," explained Rohit Manocha, Executive Chairman of TGI Fridays. "This restructuring provides an opportunity to optimize our corporate infrastructure and position our core restaurants for long-term success."

The financial troubles were compounded when Hostmore, a British restaurant operator that managed TGIF Funding (which collects royalties from franchise locations), abruptly terminated acquisition plans in September after losing its management role. The collapsed deal sent Hostmore's stock plunging 90%, eventually forcing its UK subsidiary Thursdays (UK) into administration with £10 million in debt.

In October, administrators closed 35 TGI Fridays locations across Britain under Thursdays (UK) management, resulting in over 1,000 job losses - though these international franchise closures are unrelated to Saturday's U.S. bankruptcy announcement.

Franchise Operations Unaffected

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TGI Friday's emphasized that all franchise locations worldwide will continue normal operations throughout the Chapter 11 process. The brand is licensed to 56 independent franchise groups operating restaurants across 41 countries - none of which are included in this U.S.-focused restructuring. 49 50