The future of TGI Fridays in the UK is uncertain as the restaurant chain has filed a notice of intention to appoint administrators. This action comes just months after the company closed 36 locations and eliminated around 1,000 jobs. The parent company, Liberty Bar and Restaurant Group, is taking this step to provide time for directors to consider the chain’s future and to pause creditor actions.
Phil Broad, president of TGI Fridays international franchising, confirmed the filing with the court, stating, “This step brings the new owners, who assumed control last month, closer to securing and strengthening the long-term future of TGI Fridays in the UK.” Broad emphasized that the priority remains on protecting employees and the remaining restaurants. Notably, TGI Fridays locations will continue operating through the festive season.
TGI Fridays’ Recent Struggles and Changes in Ownership
Established in the UK since 1986, TGI Fridays has faced significant challenges in recent years. The company initially agreed to acquire the chain for £177 million in April 2022, but these plans fell through in September due to legal complications. The chain was subsequently rescued from administration in October 2022 by Breal Capital and Calverton, which saved numerous restaurants but resulted in the closure of 36 underperforming locations, including its flagship restaurant in Leicester Square.
Despite these setbacks, TGI Fridays maintained operations across the country, including popular venues at the O2 in Greenwich and Westfield, Stratford City. At the time of the acquisition, a spokesperson for Breal Capital and Calverton stated, “We hand the reins over with positive like-for-like sales growth and festive trading currently a healthy 25% up on bookings versus this time last year.”
In November 2023, TGI Fridays was acquired by Sugarloaf TGIF Management, led by former chief executive Ray Blanchette. This acquisition preserved 49 remaining restaurants and approximately 2,000 jobs across the chain. Shortly after the acquisition, financial advisory firm Interpath was appointed to explore strategic options for TGI Fridays, including potential investor engagements.
Outlook for TGI Fridays
The filing for administration highlights ongoing instability within the restaurant sector, particularly for chains struggling to adapt to changing market conditions. While TGI Fridays has a long-standing presence in the UK dining scene, the economic landscape has forced the company to make difficult decisions to ensure its survival.
As the situation develops, the focus will remain on how management navigates this latest challenge while prioritizing employee welfare and customer experience during a critical trading period. The outcome of the administrators’ appointment could significantly impact TGI Fridays’ operations and its role in the competitive casual dining market.
