TGI Fridays is on the brink of collapse, with its owner preparing to push the casual dining chain into pre-pack administration as early as next week.
Sugarloaf TGIF Management, which acquired the restaurant business just two months ago, is finalising arrangements that could see a substantial portion of its 49 UK sites shut down permanently.
Sources indicate that between 15 and 20 locations may be axed, though the precise figure remains under discussion and could still change.
The restructuring would leave hundreds of workers facing redundancy from the chain’s workforce of nearly 2,000 employees.
A company spokesperson stated on Friday: “TGI Fridays UK is still assessing all options for the future of the business. No decisions have been made yet and locations continue to operate as usual.”
Interpath Advisory has been appointed to oversee the administration process, with two formal notices of intention to appoint the firm lodged before Christmas.
Hundreds of jobs at risk as major restaurant chain warns 20 locations face closure
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PA IMAGESHowever, those familiar with the situation have warned that the transaction might slip beyond the anticipated timeframe of next week.
The company has declined to provide details about the specifics of any potential pre-pack arrangement.
Those familiar with the situation have warned that the transaction might slip beyond the anticipated timeframe of next week
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PA/GETTYThe latest developments add to mounting pressure across the hospitality sector, with operators increasingly vocal about the impact of higher national insurance contributions and other tax measures introduced in Rachel Reeves’s 2024 and 2025 Budgets.
TGI Fridays was put up for sale in November, just weeks after being acquired by Sugarloaf TGIF Management, a company led by former chief executive Ray Blanchette.
However, the chain’s difficulties stretch back more than a year. In April last year, its parent company agreed a £177million deal to buy the UK business, but the takeover was abandoned in September after legal complications.
Later that month, TGI Fridays fell into administration, placing 87 restaurants on the market.
A rescue followed in October when Breal Capital and Calverton stepped in, saving dozens of sites, although 36 locations were closed permanently.