TGI Fridays has confirmed a rescue deal which will mean more than 2,000 jobs will be saved – but also announced the closure of 35 restaurants.
Breal Capital and Calveton UK announced today that it had agreed to buy 51 of the US-themed restaurants, after the company fell into administration last month.
The sale allows the brand to continue serving customers on UK high streets and means just under 2,400 people have kept their jobs with the company.
But joint administrators at Teneo said 35 restaurants were not included in the deal and have been closed immediately, resulting in 1,012 redundancies.
Trade union Unite said on X, formally Twitter, said that it had been hearing from members who had been ‘furiously contacting’ the hospitality organisers in response to the immediate closures.
According to Unite, 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, the trade union said.
The future of the company is hanging in the balance after it stumbled upon hard times – with a third of the chain’s sites at risk of closing permanently (file image)
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 look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.
‘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.
‘We are proud to serve millions of customers across the UK and are committed to continuing to evolve our proposition and to give our guests a great value for money experience that keeps them coming back to enjoy TGI Fridays time and again.’
The prospect of a sale to Breal and Calveton was first reported by Sky News on Sunday evening – as the final details were still being decided upon between the buyers and the administrators to the business.
The deal is thought to include the chain’s existing leases and the right to use the TGI Fridays brand in the UK.
Breal Capital and Calveton UK announced today that it had agreed to buy 51 of the US-themed restaurants, meaning just under 2,400 jobs will be saved (file image)
Breal and Calveton acquired D&D London – owner of the German Gymnasium and Quaglino’s restaurants – last year.
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.’
The previous owners Hostmore said last month that it was filing for administration but that this would have no impact on Thursdays, the trading subsidiary which owns the TGI Fridays UK franchise.
But afterwards the operating business itself filed a notice of intention to appoint administrators.
Hostmore’s board said the reason for its collapse was ‘a very challenging set of circumstances’.
The news of the sale will lift TGI Fridays who had previously mourned ‘the end of an era’ when it was announced the outlet had fallen into administration.