TGI Fridays, a well-known family-favourite restaurant chain in the UK, has abruptly closed 16 of its locations as part of a pre-pack administration deal, although 33 branches and 1,384 jobs have been retained. This major restructuring move aims to secure a more sustainable future for the brand amid challenging times for the hospitality sector.
Phil Broad, Global President of TGI Fridays, explained that the acquisition was the most viable path forward for the business. “We have been working closely to explore all available options for securing the long-term future of TGI Fridays in the UK, and believe that this is the best outcome for the business, preserves jobs, and offers a strong platform for success and growth,” he said.
Ryan Grant, Managing Director at Interpath and joint administrator, highlighted that despite the difficulties facing hospitality operators, this transaction represents a critical step in TGI Fridays’ broader turnaround plan. “It puts in place stable foundations upon which the business can begin to move forward,” he added.
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The 16 closed restaurants include locations in Aberdeen Beach, Ashton, Bournemouth, Braintree, Coventry, Crawley, Doncaster, Edinburgh, Nottingham, Reading, Sheffield, Staines, Stevenage, Stratford, Telford, and Walsall.
Earlier in 2024, TGI Fridays had confirmed the immediate closure of 35 UK restaurants after securing a rescue deal with investors Breal Capital and Calveton UK. This deal resulted in the takeover of 51 sites, saving many jobs, although the closures led to around 1,000 redundancies.
Julie McEwan, CEO of TGI Fridays UK, expressed regret over the job losses. “We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us. We are doing everything possible to retain our team and support those impacted. We would like to thank our team and our loyal guests for supporting us during this transition.”
This restructuring marks a significant moment for the chain as it works to stabilize and rebuild its presence across the UK.