Casual dining chain TGI Fridays Inc. filed a lawsuit Chapter 11 Bankruptcy On Saturday in Texas, the company’s chairman said the company was still not fully recovered from the Covid-19 outbreak.

Bar and grill chain known for serving burgers, loaded potato peels The move was made to “address legacy liabilities and position the restaurants for long-term success,” the company said in a press release.

The Dallas-based company said 39 of its local corporate-run restaurants will remain open. TGI Fridays is an acronym for “Thank God it’s Friday.”

TGI FRIDAYS CLOSED A DOZEN STORES ACROSS AMERICA IN JUST ONE MONTH

TGI Fridays has closed its longtime restaurant on Route 38 in Cherry Hill. (Jim Walsh/Courier-Post/Imagn Images via USA TODAY NETWORK/IMAGN)

Additionally, the company has franchised the brand to 56 franchisees in 41 countries. all of these franchise locationsBoth the domestic and international ones are independently owned and are therefore not included in the TGI Fridays Chapter 11 process, the company said.

The company said it expects to use the time and legal protections provided through the Chapter 11 restructuring process to explore strategic alternatives to ensure the long-term viability of the brand.

“The next steps announced today are difficult but necessary actions to best protect the interests of our stakeholders, including our domestic and international franchisees and valued team members around the world,” Rohit Manocha, chairman of the board of directors of TGI Fridays Inc, said in a statement. he said.

RED LOBSTER’S INFINITE SHRIMP DEAL CREATED ‘A LOT OF CHAOS’, NEW CEO ANNOUNCES BANKRUPTCY

A closed TGI Fridays store in Princeton, New Jersey (Getty Images/Photo illustration/Getty Images)

“Our financial challenges were primarily driven by COVID-19 and our capital structure. This restructuring will allow our forward-looking restaurants to move forward with an optimized corporate infrastructure that will enable them to reach their full potential.”

The company announced that it has committed to debtor-owned financing to support operations while the Chapter 11 process continues.

The company noted that the TGI Fridays brand and related intellectual property were not included in the Chapter 11 filing due to a securitization agreement with a separate investor group.

The company has closed 12 locations in the U.S. and 35 restaurants abroad in recent weeks.

The brand closed in January 36 restaurants “Underperforming” companies across the US claimed this was part of a long-term growth strategy to ensure sustainability.

READ MORE FROM FOX BUSINESS

Image of the TGI Fridays sign in New York (Bruce Bennett/Getty Images/Getty Images)

It also sold eight company-owned restaurants to former CEO Ray Blanchette that same month, and the company added that this “era of transformation” would help generate recurring revenue for the chain.

TGI Fridays has been serving customers for over 50 years.

The company says it now operates more than 461 restaurants in 41 countries, offering “high-quality, classic American fare and iconic drinks backed by authentic, genuine service.”

Fox News’ Kristen Altus and Daniella Genovese contributed to this report.