Bankrupt US-based restaurant chain TGI Fridays has secured court approval to sell nine of its corporate-owned restaurants for $34.5m.
The approval by US bankruptcy judge Stacey Jernigan in Dallas, Texas, will enable the American brand to repay its creditors, as reported by Reuters.
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Jernigan said: “I’m glad that TGI is going to continue on at least at some level in the US.”
The sale of nine of the 39 corporate-owned restaurants will not affect TGI Fridays’ franchised locations, many of which are situated outside the US.
At the company’s bankruptcy filing on 2 November 2024, it had 122 franchised outlets in the US and 316 in other countries.
The nine locations set for transfer are five within the Dallas-Fort Worth Airport and four in Maryland.
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By GlobalDataThese will now come under the ownership of Mexico-based MERA, a privately owned entity that specialises in operating restaurants in airports and cruise ports.
MERA’s acquisition came after outbidding a $30m offer from former TGI Fridays chief executive officer Ray Blanchette through his company Sugarland Hospitality at the onset of the bankruptcy process.
TGI Fridays has also received bids for some of its other 30 locations and is open to further sales.
The proceeds from the approved sale will allow TGI Fridays to fully settle its $23.9m bankruptcy loan, leaving $8m in surplus funds.
The Dallas-based chain filed for bankruptcy with debts amounting to $37m. It is among several prominent US restaurant chains such as Red Lobster, Buca di Beppo and Rubio’s Coastal Grill that have succumbed to bankruptcy in 2024.
In a related development reported by the Wall Street Journal, Ray Blanchette is set to manage TGI Fridays’ remaining restaurants as it navigates through bankruptcy protection.
Blanchette, who led TGI Fridays for five years before stepping down in May 2023, previously agreed to purchase eight Northeastern restaurants in January 2024 and more locations during the bankruptcy proceedings.
