TGI Fridays gets bankruptcy court approval to sell 9 locations
By Dietrich Knauth
NEW YORK, Jan 2 (Reuters) - Bankrupt restaurant chain TGI Fridays received court approval on Thursday to sell nine of its 39 corporate-owned locations, raising $34.5 million to repay its creditors.
U.S. Bankruptcy Judge Stacey Jernigan approved the sale at a court hearing in Dallas, Texas, saying that it would help preserve a well-known American brand.
"I'm glad that TGI is going to continue on at least at some level in the U.S.," Jernigan said.
The sale does not impact TGI Fridays' currently franchised locations, many of which operate outside the U.S.
TGI Fridays entered bankruptcy on Nov. 2 with 122 franchised locations in the U.S. and 316 franchised locations in other countries, according to its court filings.
The sale will transfer ownership of nine locations, including five in the Dallas-Fort Worth Airport and four in Maryland, to Mexico-based MERA, a privately owned company that operates restaurants in airports and cruise ports.
MERA outbid TGI Fridays former CEO, Ray Blanchette, for the nine locations. Blanchette's company Sugarland Hospitality offered $30 million for the sold locations at the start of TGI Friday's bankruptcy, according to court documents.
TGI Fridays has received offers for some of its remaining 30 locations during a recent auction, and it will continue to explore additional sales.
The sale approved Tuesday will allow TGI Fridays to fully repay its $23.9 million bankruptcy loan, with about $8 million in cash left over.
Dallas-based TGI Fridays filed for bankruptcy with $37 million in debt. The 59-year-old restaurant chain joined several other U.S. restaurant companies that filed for bankruptcy in 2024, including Red Lobster, Buca di Beppo, and Rubio's Coastal Grill.
The case is In re TGI Fridays Inc et al, U.S. Bankruptcy Court for the Northern District of Texas, No. 24-80069.
For TGI Fridays: Chris Dickerson of Ropes & Gray; Holland O'Neil of Foley & Lardner, among others.
Read more:
TGI Fridays $50 mln gift card stash causes franchisee heartburn
TGI Fridays operator files for bankruptcy amid financial woes
(Reporting by Dietrich Knauth)
((Dietrich.Knauth@thomsonreuters.com;))
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