WASHINGTON, United States (AFP) — In the statement made by the company, it was stated that the American food chain TGI Fridays filed for Chapter 11 bankruptcy in the US state of Texas on Saturday.

The bar and grill chain known for serving burgers, chicken wings and specialty cocktails said its dozens of restaurants in the United States and abroad will remain open to customers as it uses the company’s restructuring process to “explore strategic alternatives to provide long-term viability of the brand”.

TGI Fridays Inc, which has filed for bankruptcy, owns and operates 39 restaurants in the United States.

TGI Friday’s 56 independently owned franchise locations in the United States and 40 other countries were not included in the Chapter 11 process, the firm said.

“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,” Chief Executive Officer Rohit Manocha said in a statement.

Manocha said that the main reasons for the financial problems are the Covid-19 pandemic and the company’s 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,” he said.