NEW DELHI: Even as TGI Fridays Inc has filed for Chapter 11 bankruptcy in the US, its India operations may remain unaffected. The US-based company in a press statement has said that TGI Fridays has franchised the brand to 56 franchisees in 41 countries, and all these franchise locations, both domestic and international, are independently owned and therefore not included in TGI Fridays Inc’s Chapter 11 process.
They are open and serving customers as usual, reiterated the company in a press statement.
“To ensure continuity of service to franchisees, TGI Fridays Franchisor, LLC has negotiated a Transition Services Agreement with – and provided interim funding to – TGI Fridays Inc to maintain support services for franchisees while TGI Fridays Franchisor, LLC works to implement a new long-term support structure,” the company said.
On Saturday, it filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the Northern District of Texas. According to a statement issued by the company, it expects to use the time and legal protections made available through the Chapter 11 restructuring process to allow the company to explore strategic alternatives in order to ensure the long-term viability of the brand.
The Company has secured a commitment for debtor-in-possession financing to support operations while proceeding through the Chapter 11 process.
It also filed motions with the Bankruptcy Court that, when approved, will allow the company to, among other things, continue its customer programs in the normal course. These motions are typical of the Chapter 11 process and are expected to be heard approved in the first days of the case.