KUALA LUMPUR (Nov 4): TGI Fridays Malaysia's operations in the country will continue to operate as usual and remain unaffected by the recent bankruptcy filing of TGI Fridays Inc in the US, says Techna-X Bhd (KL:TECHNAX), which owns Craveat International Sdn Bhd — the master franchisee and developer for TGI Fridays Malaysia.

Craveat International operates under the franchise agreement with TGI Fridays Franchisor LLC, which is separate from TGI Fridays Inc, Techna-X said in a statement.

It also announced several new developments for TGI Fridays Malaysia, including the opening of a new outlet in Mid Valley Megamall this month, the reopening of its Sunway Pyramid outlet in December 2024 and a new outlet launch in Putrajaya scheduled for the first half of 2025.

"We’re thrilled to be expanding in Malaysia and bringing more opportunities for our guests to experience That Fridays Feeling,” said Lee Yew Jin, chief executive officer of TGI Fridays Malaysia. "Our local restaurants remain committed to delivering the great food, service, and celebration that our guests know and love."

On Saturday, TGI Fridays Inc, which oversees 39 corporate-owned restaurants in the US, filed for Chapter 11 bankruptcy protection in Dallas, Texas. This legal step, Techna-X said, allows TGI Fridays Inc to reorganise and restructure its financial operations to ensure long-term stability.

"The filing impacts only corporate-owned restaurants in the US, while franchise locations worldwide remain unaffected," Techna-X said.

The bankruptcy protection was reported to have been filed following prolonged financial challenges and a collapsed deal with UK-based restaurant operator Hostmore.

The TGI Fridays brand is franchised to 56 franchisees in 41 countries through TGI Fridays Franchisor LLC, and all the franchise locations, both domestic and international, are independently owned and therefore not included in TGI Fridays Inc’s Chapter 11 process, Techna-X said. "They are open and serving customers as usual," it added.

Techna-X, previously known as Sino Hua-An International Bhd, acquired Craveat International, which is the operator of TGI Fridays for Malaysia, as well as proprietary owner of the Teh Tarik Place brand, in 2019.

In 2020, Techna-X, through Craveat International, also acquired Chaswood Restaurant Management (Beijing) Co Ltd, which has the rights to operate and market TGI Fridays in Beijing, China. 

The acquisition placed ownership of two TGI Fridays outlets in Beijing under Techna-X, which has also expanded its Teh Tarik Place brand in China.

Shares of Techna-X dropped two sen or 16.67% to close at 10 sen on Monday, bringing its market capitalisation to RM24.03 million.