TGI Fridays’ UK operator has entered administration, leading to the immediate closure of 16 restaurants and 456 job losses, while a pre-pack deal with Sugarloaf TGIF Operations Limited saves 33 outlets
Popular family restaurant chain TGI Fridays has been forced to suddenly close 16 of its outlets after tumbling into administration. The pre-pack administration, which rescues 33 branches, will nonetheless result in the axing of more than 450 jobs.
The business and assets of Liberty Bar and Restaurant Group Limited, which runs the UK division of the American-themed dining chain, have been snapped up by Sugarloaf TGIF Operations Limited. The deal, finalised immediately after administrators were brought in, safeguards the positions of 1,384 staff across the surviving restaurants.
Yet the rescue package does not extend to 16 of the group’s locations, reports the Express.
These sites have shuttered with immediate effect, causing 456 redundancies. The joint administrators said supporting the impacted workers is now a top priority as they manage the closure of the non-transferring outlets.
Ryan Grant and Will Wright were appointed joint administrators to Liberty Bar and Restaurant Group Limited today (January 13).
In a statement Phil Broad, Global President of TGI Fridays, said he believes the future of the iconic chain is in “strong hands” with the focus now turning to reinvigorate the brand.
He said: “We have been working closely to explore all available options for securing the long-term future of TGI Fridays in the UK, and believe that this is the best outcome for the business, preserves jobs, and offers a strong platform for success and growth.
“TGI Fridays has a long history in the UK, and I believe that the future of the brand is in strong hands – focused on reinvigorating the brand while continuing to deliver the bold flavours, welcoming atmosphere, and high-energy dining experience that define TGI Fridays.”
Ryan Grant, managing director at Interpath and joint administrator, commented: “We are pleased to have been able to secure this transaction which will see this well-known brand continue to trade across the UK.”
He added: “While these have been difficult times for hospitality operators generally, this marks a pivotal step in TGI Friday’s wider turnaround plan, putting in place stable foundations upon which it can begin to move forward.”
The company behind TGI Fridays filed to appoint administrators twice in December. The first TGI Fridays opened its doors in the UK in 1986, with its inaugural restaurant launched on Hagley Road in Birmingham before expanding nationwide.
At its height, the renowned chain operated around 80-87 UK restaurants, but this number has now significantly decreased, reflecting years of closures and financial strain.
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