TGI Fridays closes 35 restaurants despite rescue deal

9th October 2024 | Jack Oliver

News

TGI Fridays is closing 35 branches despite the restaurant chain’s UK owner being bought out in a rescue deal.

Breal Capital and Calveton UK – the owners of the D&D London restaurant group – have acquired TGI Fridays UK after its former owner Hostmore fell into administration last month.

As part of the rescue deal, 51 restaurants will remain open, although administrators Teneo said TGI Fridays would be closing the 35 branches with immediate effect.

However, TGI Fridays UK said it is working with landlords on a deal to save the closed restaurants.

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.

“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.”

Hostmore fell into administration after its shares fell by over 90%, following the group’s announcement that it expected to be “wound up” and de-listed once the sale of its restaurants was finalised. The group had agreed to a £177m deal to acquire its US-based parent company in April, however this fell through after the American group lost control of TGIF Funding, which holds the legal title to the franchise agreement royalties.

The restaurants remaining open are located in/at: