A FAMILY favourite restaurant chain is closing 35 locations with immediate effect after it crashed in to administration.
More than 1,000 staff will lose their jobs at TGI Fridays after a deal to save the well-known brand failed to include all 86 locations.
A deal has been struck that saves 51 restaurants and at least 2,000 jobs.
Julie McEwan, chief executive of TGI Fridays UK, said: “TGI Fridays is a much-loved brand with a rich heritage.
“The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.
“We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.”
The restaurant chain added that it is hopeful that it may be able to secure further locations following discussions with the landlords.
Over 30 TGI restaurants have not been bought as part of the rescue deal and have closed with immediate effect. These are located in
TGI Fridays plunged into administration on September 18, putting all 87 locations at risk.
When a company enters administration, all control is passed to an appointed administrator – who has to be a licensed insolvency practitioner.
Their goal is to leverage the company’s assets and business to repay creditors.
Administrators Teneo were on the hunt for a buyer for all or parts of the business.
The new deal was agreed today with Breal Capital and Calveton UK, and will operate under the Liberty Bar and Restaurant Group Limited.
The pair already own D&D London, Byron Burgers and Vinoteca.
A spokesperson for the new owners said: “We are delighted to be working with such an enthusiastic and committed Management Team to both modernise the business and capitalise on the heritage of this iconic Brand.”
Since its debut in Birmingham in 1986, TGI Fridays quickly expanded nationwide, winning over diners with its casual American bistro-style experience.
Serving staff were known as Dub Dubs, and taught the art of entertaining their customers with jokes, banter, and other gimmicks like juggling and magic tricks, all performed with impeccable table craft and cheeriness.
A decade ago, the chain was acquired by a private equity firm, which rebranded it by removing all punctuation, changing the name from T.G.I Friday’s to TGI Fridays.
In 2021, the company was spun off into Hostmore, which was a publicly traded company on the London Stock Exchange until the recent administration led to its being delisted.
Recently, the chain’s fortunes have waned, with Hostmore reporting that UK sales have dropped by more than 10% this year compared to last year.
TGI Fridays’ biggest market is the US, where it operates 128 restaurants, including franchised sites.
It also operates more than 270 restaurants in countries around the world.
THE rescue deal has saved 51 of TGI's 87 sites. These are located in:
The hospitality sector has struggled to bounce back after the pandemic, facing challenges including soaring energy bills, inflation and staff shortages.
In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.
The Restaurant Group (TRG), which owned Frankie & Benny’s, Chiquito and Wagamama, shut dozens of sites in the same year.
It then went on to sell its Frankie & Bennys and Chiquito brands to Cafe Rouge owner The Big Table group in September 2023.
Italian restaurant chain Prezzo also closed dozens of sites last year.
In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit around 20 loss-making restaurants after a “challenging” start to the year.
In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.
Pub giant Stonegate has also raised fears about its survival as it races to plug its debts.
Britain’s “rudest restaurant” went bust in September after its parent company, Viral Ventures UK, reportedly racked up more than £400,000 worth of debt.
YOU are entitled to statutory redundancy pay if you have worked for your employer for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
You cannot be paid less than the statutory amount.
If you were made redundant on or after 6 April 2024, your weekly pay is capped at £700 and the maximum statutory redundancy pay you can get is £21,000.
The government has a calculator on its website to help you work out how much you are owed.
You may get more than this statutory amount if your employer has a redundancy scheme.
