More than 1,000 TGI Fridays’ UK staff will be made redundant despite a rescue deal from the owners of restaurant group D&D London.
They have bought the UK operator of the American-themed chain, after its owner fell into administration last month.
The deal will save nearly 2,400 jobs at 51 restaurants, but the administrators, Teneo, said 35 branches have closed.
TGI Fridays UK said it was working with landlords on a deal to save the closed restaurants.
“We are doing everything possible to retain our team and support those impacted,” said chief executive Julie McEwan.
She added she was “devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us”.
The buyers, Breal Capital and Calveton UK, already own restaurant chains Byron Burgers and Vinoteca as well as restaurant group D&D London.
A spokesperson for the new owners said it wanted to “both modernise the business and capitalise on the heritage of this iconic brand”.
They added that the deal “preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow”.
However, Unite lead organiser for hospitality Bryan Simpson called the treatment of TGI Fridays’ UK staff “a national disgrace”.
The restaurants being closed are Barnsley, Birmingham Hagley Road, Bracknell, Brighton Marina, Bristol Cabot Circus, Cardiff Newport Road, Chelmsford, Cheltenham, Croydon, Derby, Dundee, Durham, Edinburgh Fort Kinnaird, Enfield, Gateshead, Gloucester Quays, Halifax, Jersey, Leeds, Leeds Trinity, Leicester, Lincoln, Manchester Royal Exchange, Newcastle Eldon Square, Newport, Northampton, Prestwich, Romford, Sale, Solihull, Southampton West Quay South, Speke, Sutton Coldfield, Swansea, and Watford North.
Breal and Calveton secured the deal on Monday after TGI Fridays’ UK owner Hostmore fell into administration due to debt.
Retail experts have blamed the collapse of TGI Fridays’ UK business on a failure to adapt its American-inspired, meat-heavy menu to changing consumer tastes for healthier options.
“With some investment and more importantly enthusiasm, the brand can really connect with diners again,” said analyst Catherine Shuttleworth.
She added it was notable the new owners had chosen to keep locations in shopping centres and retail parks “where younger diners and families choose to spend their money”.
TGI Fridays opened its first restaurant in New York in 1965 and its first UK restaurant in Covent Garden two decades later.