TGI Friday's (hereinafter referred to as TGIF), the epitome of family restaurants, filed for bankruptcy protection (Chapter 11) in the U.S. court due to financial difficulties.
TGIF said in a press release on Tuesday that it has filed a voluntary petition with the court under Chapter 11 of the Bankruptcy Act (Chapter 11), a process in which companies restructure their debts while continuing to operate under court supervision, to address existing debts and lead restaurants to long-term success.
"All restaurants will remain open and serve customers as usual," TGIF said.
The bankruptcy protection application is limited to U.S. corporations that own and operate 39 restaurants in the U.S., and TGI Fridays Franchiser, LLC, which owns global franchise brands and intellectual property rights, is not included, the company explained. The corporation owns the rights of franchise brands sold to 56 businesses in 41 countries.
In the United States, large-scale restaurant companies such as "Red Lobster," a seafood restaurant chain that was popular for menus such as lobsters and shrimp, Italian-style chain "Buka Di Beppo," fish tacos chain "Rubios Coastal Grill," and Mexican restaurant chain "Tihuana Platts" filed for bankruptcy protection.
Founded in 1965, TGIF's popularity peaked in 2008 with 601 restaurants in the U.S. and $2 billion (about 2.761 trillion won) in sales, according to Kevin Simp, head of research at industrial research firm Technomick. TGIF's sales in the U.S. last year were only $728 million (about 1.5 trillion won).
The Associated Press and Bloomberg News analyzed that while competitors such as Chipotle are emerging in the United States, the business difficulties of traditional family restaurants are intensifying as the culture of eating at home spreads due to high prices and the development of food delivery services.
Reporter Lee Yu Na from Digital News Team.
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