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An image of the sign for TGI Fridays in New York (Bruce Bennett/Getty Images/Getty Images)

Casual dining chain TGI Fridays Inc. requested Chapter 11 bankruptcy in Texas on Saturday, with the company’s executive chairman saying it has not yet fully recovered from the COVID-19 pandemic.

The bar and grill chain, known for serving hamburgers, loaded potato skins and $5 happy hour drinks, said the move was made to “address legacy liabilities and position the restaurants for long-term success,” the company said in a news release.

The Dallas-based company says 39 of its domestic company-operated restaurants will remain open. TGI Fridays is short for “Thank God It’s Friday.”

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In addition, the company has franchised the brand to 56 franchisees in 41 countries. All this franchise locationsboth domestic and international, are independently owned and therefore not included in the TGI Fridays Chapter 11 process, the company said.

The company says it expects to use the time and legal protections made available by 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 protect the best interests of our stakeholders, including our national and international franchisees and our valued team members around the world,” said TGI Fridays Inc’s executive chairman, Rohit Manocha, in a statement.

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“The main driver of our financial challenges has resulted from COVID-19 and our capital structure. This restructuring will allow our future restaurants to continue with an optimized corporate infrastructure that allows them to reach their full potential.”

The company says it has secured a debtor-in-possession financing commitment to support operations while it goes through the Chapter 11 process.

The TGI Fridays brand and related intellectual property are not included in the Chapter 11 filing because of a securitization agreement with a separate group of investors, the company says.

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

In January, the brand closed 36 of its restaurants in the US, which had “underperformed”, claiming it was part of a long-term growth strategy to ensure viability.

It also sold eight of its corporate-owned restaurants to its former CEO Ray Blanchette that month, with the company adding that this “era of transformation” will help drive continued revenue for the chain.

TGI Fridays has been serving customers for more than 50 years.

The company says it currently operates more than 461 restaurants in 41 countries that serve “high-quality, classic American dishes and signature beverages, backed by genuine, authentic service.”

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

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