Patient Turnaround Improves Value for All Stakeholders


Annual Sales



The Briad Group, Livingston NJ


  • Company generated peak EBITDA of $50 million that had declined to $21 million largely due to a rapid decline of TGI Friday’s and labor cost increases.
  • TGI Friday’s brand (52 locations) was in the Casual segment and was experiencing a long-term decline, even before Covid, due to lack of investment by the Franchisor. ​
  • Proprietary brand (22 locations, Casual segment) and Wendy’s (+100 locations, QSR segment) significantly affected by onset of Covid. ​
  • Owner had affiliate entities that owned and leased restaurant locations to the Borrower. Certain leases were not at arms-length “market” rates.​
  • Bank Group had risk of loss of over 30% of its loan.


  • MorrisAnderson engaged as Financial Advisor to the Bank Group to work with the Company’s Financial Advisor on a Turnaround Plan, which was implemented over two years.
  • Closed 27 negative cash flow locations after negotiating lease terminations with the landlords. ​
  • Sold the TGI Friday’s Brand back to the Franchisor to eliminate negative cash flow.​
  • Closed the proprietary Brand to eliminate negative cash flow.
  • Established delivery relationships with GrubHub, UberEats and Postmates. ​
  • Renegotiated location leases with lease rates 50% to 75% lower than existing rates in return for extensions. Negotiated certain lease payments as a % of revenue. ​
  • Owner sold +30 real estate locations to 3rd party landlords, eliminating a conflict with the Borrowers. ​
  • Reduced corporate overhead by $3.4 million on an annual basis.


  • EBITDA increased to $34 million and growing on just the remaining Wendy’s brand.
  • Owner injected $25 million of new capital into the business and Bank Group restructured approximately $180 million debt.
  • Banks expected to be repaid in full including default interest. ​
  • Company avoided bankruptcy and a 363-sale process that would have resulted in +$30 million of bankruptcy expenses and sale deductions/adjustments.​
  • Approximately 2,500 jobs preserved.​
  • All trade creditors and employees paid in full.​
  • Owner kept business which has significant long-term value potential.