TGI Fridays UK secures rescue deal but 1,000 jobs lost as 35 restaurants shut
Breal Capital and Calveton UK have acquired 51 restaurants after the group’s previous operator fell into administration.
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TGI Fridays will remain on UK high streets following a rescue deal for the chain, but more than 1,000 staff have lost their jobs with the immediate closure of 35 restaurants.
Breal Capital and Calveton UK have acquired 51 restaurants after the group’s previous operator fell into administration.
It means that nearly 2,400 jobs have been saved across the US-themed restaurant and cocktail bar.
But joint administrators at Teneo said 35 restaurants were not included in the sale and have been closed immediately, resulting in 1,012 redundancies.
We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us
Julie McEwan, chief executive of TGI Fridays UK, said: “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 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.”
Daniel Smith, senior managing director of Teneo, said the acquisition “preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow”.
New private equity owners Breal and Calveton jointly own upmarket restaurant chain D&D London, and between them have had investments in Byron Burger and wine bar chain Vinoteca.
Trade union Unite said on X, formerly Twitter, that it had been hearing from members who had been “furiously contacting” the hospitality organisers in response to the immediate closures.
It reported that staff had been shut out of restaurants, with padlocks on the doors changed, or given no form of redundancy consultation, while others were invited to a video call with members of the head office with one hour’s notice.
Other workers said they had not been told whether or not they will be paid, according to the trade union.
TGI Fridays’ previous UK operator, Hostmore, appointed administrators last month and had been hoping to secure a buyer for the chain.