Americana Restaurants, listed on ADX and Tadawul, has clarified that it will not be closing any TGI Fridays’ outlets in the Gulf and Egypt. This announcement follows the recent Chapter 11 bankruptcy filing by the parent company of TGI Fridays in Texas.
The franchise, which serves classic American dishes, operates in six markets including the UAE, Kuwait, Bahrain, Qatar, Saudi Arabia, and Egypt through an exclusive partnership with Americana Restaurants. The company reassured its patrons and shareholders that its operations will remain unaffected by the developments in the U.S.
“Our business will continue seamlessly in our six markets and is not impacted by the Chapter 11 filing by TGI Fridays Inc. on November 2,” Americana Restaurants stated.
It emphasized that its agreement is with TGI Fridays Franchisor LLC, which is separate from TGI Fridays Inc., protecting it from the current financial restructuring. The franchisor has agreements with 56 franchisees across 41 countries, all independently operated and unaffected by the U.S. proceedings.
This update comes after Americana Restaurants released its 9-month financial report showing declines, largely attributed to ongoing geopolitical challenges.
