AMERICAN FAST FOOD CHAIN TGI FRIDAY'S INITIATED BANKRUPTCY PROCEEDINGS

A chain of catering companies in the United States has declared bankruptcy. TGI Friday's, which is known for its relaxed atmosphere and traditional American cuisine, filed a complaint with the Northern District Court of Texas. The firm referred to Chapter 11 of the U.S. Bankruptcy Code. This suggests that the organization intends to carry out a judicial debt restructuring in order to continue its work.

According to court documents reported by Bloomberg, the firm has assets and liabilities ranging from $100 million to $500 million. The head of the company connects the difficult financial situation in which the restaurant chain found itself with the consequences of the pandemic and the peculiarities of the company's property structure.

The decision to restructure was made against the background of serious changes in American consumer behavior. With rising inflation and the rising cost of living, many consumers have become more economical, preferring home-cooked meals or choosing more affordable fast-food establishments. In addition, the chain faced fierce competition from new restaurant business formats.

It is known that the company has 39 operating points directly in the USA. At the same time, the entire intellectual capital of Friday's, including the rights to the brand and corporate symbols of the company, is owned by another company – TGI Friday's Franchisor LLC, which cooperates with 56 franchisees. It is she who is actively working in 41 countries of the world, including the Russian Federation. This company is not included in the upcoming bankruptcy procedure. This procedure only affects corporate restaurants under the direct management of TGI Friday's Inc.

The company's management considers the bankruptcy procedure as an opportunity for strategic business restructuring. As part of this process, TGI Friday's plans to use legal protection mechanisms to develop new approaches to doing business and ensure the long-term viability of the brand. This will allow us to maintain operational activities during the restructuring period.

It is worth noting that Friday's is far from the only catering chain that has faced financial difficulties this year. Similar appeals to the US courts have already been received from other well-known brands (Red Lobster, Bucca di Beppo and others). All this, experts say, reflects the trend of transformation of the American restaurant market.