A rescue deal for the UK arm of TGI Fridays has been struck, with two private equity groups to buy 51 restaurants – although a further 35 outlets are to close with the loss of more than 1,000 jobs.
Calveton UK and Breal Capital, which own upmarket restaurants including Le Pont de la Tour, Quaglino’s and Coq d’Argent, have bought 51 sites from the joint administrators Teneo, which will result in the transfer of 2,389 employees.
However, Teneo said in a statement that 35 restaurants were not included within the sale and so have been closed with immediate effect, resulting in 1,012 job losses. Restaurants due to close include those in Barnsley, Chelmsford, Dundee, Durham, Leeds, Newcastle, Northampton, Halifax and Swansea.
The closures and job losses led to an angry response from Unite, the trade union. Unite Hospitality claimed in a social media post on X that staff had been shut out of sites and had been invited to a head office Zoom call with only one hour’s notice.
🚨 BREAKING 🚨
Mass immediate closures at @TGIFridays across the UK.
Members have been furiously contacting us all morning in response to news that:
🤯Staff have been shut-out of sites & padlocks changed.
😡 Zero notice or redundancy consultation.
😤 Workers invited to head…— Unite Hospitality (@FairHospitality) October 7, 2024
Bryan Simpson, Unite lead organiser for hospitality, said in a statement: “The way in which workers have been treated across TGI Fridays today is a national disgrace. To close venues and lock people out of their workplace with absolutely no notice is a moral outrage … We are currently supporting our TGI members through this incredibly anxious situation.”
Teneo said it had no comment on the union’s X post.
The rescue deal comes less than a month after the TGI Fridays parent company, Hostmore, appointed the advisory firm Teneo as administrators after struggling to turn around the business. Its restaurants have continued to operate as normal as administrators rushed to secure a deal.
Daniel Smith, a senior managing director at Teneo, said in a statement that the casual dining sector had been hit by reduced discretionary spend due to the cost of living crisis.
“This transaction with Breal Capital and Calveton UK preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow.” he said.
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.”
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She added: “We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution,” she added. There are hopes that the group may be able to secure further locations after discussions with the landlords.
TGI Fridays was founded by the restaurateur Alan Stillman in New York in 1965 as the world’s first casual cocktail bar and restaurant, and operates across 51 countries. The British operations have been managed by franchisor Hostmore plc since 2021.