TGI Friday’s said it intends to honor its gift card obligations following the chain’s recent bankruptcy filing, but franchisees say they’re worried they’ll be stuck with the nearly $50 million liability.
In the U.S., the 59-year-old casual-dining chain owns 39 restaurants and has 122 franchised sites. There are also 316 franchised eateries outside the U.S.
The chain filed for Chapter 11 bankruptcy on November 2, citing $37 million in debt and just $5.9 million in cash on hand, and though it plans to sell its assets, the company is described as “asset light.”
U.S. Bankruptcy Judge Stacey Jernigan gave TGI Friday’s approval to continue the gift card program on an interim basis but there were no guarantees it would continue through the duration of the bankruptcy proceeding.