TGI Fridays operator files for Chapter 11 bankruptcy amid financial woes

TGI Fridays’ operator, Allegro Merger Corp., has filed for Chapter 11 bankruptcy due to ongoing financial struggles. This comes in the wake of COVID-19 severely impacting the restaurant industry with many restrictions and closures. While in bankruptcy, companies typically try to get rid of unprofitable assets and renegotiate their debts. TGI Fridays is expected to use this process to manage and restructure its debts while continuing its operation. Keep in mind that filing bankruptcy doesn’t mean the company will go out of business. It’s a way for businesses to reorganize their debts and try to become profitable again.