The future of TGI Fridays in the UK is uncertain once again, as the restaurant chain has filed a notice of intention to appoint administrators. This decision comes just months after the company closed 36 locations and eliminated approximately 1,000 jobs. The notice, submitted by the Liberty Bar and Restaurant Group, halts creditor actions and provides management with time to evaluate the chain’s future.
Phil Broad, president of TGI Fridays international franchising, confirmed the filing, stating, “The Directors of TGI Fridays UK can confirm that a notice of intent to appoint administrators was filed with the court.” He emphasized that the priority remains on protecting the chain’s employees and restaurants during this challenging time. Notably, Broad assured customers that TGI Fridays locations will remain open through the Christmas season.
History of Struggles and Recent Changes
TGI Fridays has been a significant presence in the UK since opening its first restaurant in 1986. However, the chain has encountered numerous challenges in recent years, leading to the closure of under-performing establishments. In April 2022, the parent company aimed to acquire TGI Fridays for £177 million, but legal complications caused the deal to collapse by September of that year.
In October 2022, TGI Fridays was rescued from administration by Breal Capital and Calverton. This acquisition preserved numerous restaurants, although 36 locations, including its flagship restaurant in London’s Leicester Square, were closed. At the time, a spokesperson for Breal Capital expressed optimism about the chain’s prospects, highlighting positive sales growth and a significant increase in festive bookings.
In November 2023, the chain experienced another shift when it was acquired by Sugarloaf TGIF Management, led by former chief executive Ray Blanchette. This acquisition preserved the remaining 49 restaurants and approximately 2,000 jobs. Shortly thereafter, the financial advisory firm Interpath was engaged to explore strategic options, including potential investments to secure the chain’s future.
As TGI Fridays navigates these turbulent waters, the decisions made in the coming weeks will be crucial in determining whether the restaurant can stabilize and thrive in the competitive dining landscape. The ongoing commitment to employee welfare and customer service will be vital as the management seeks to restore confidence in the brand.
