TGI Fridays has filed for Chapter 11 bankruptcy, citing persistent financial struggles and the recent collapse of a deal with UK-based Hostmore. The American dining chain, owned by TriArtisan Capital Advisors, reported assets and liabilities between $100 million and $500 million in a filing with the U.S. bankruptcy court for the Northern District of Texas.

While TGI Fridays operates 39 locations across the U.S., it has secured financing to continue its operations during restructuring. Executive Chairman Rohit Manocha attributed financial difficulties largely to the impact of COVID-19 and the company’s capital structure, noting that the restructuring will streamline operations to strengthen its corporate-owned locations.

The company’s challenges intensified when Hostmore dropped its acquisition plans and faced its own financial collapse, entering administration as debt concerns mounted.