TGI Fridays rescue leads to 1,000 job losses and 35 closures despite private equity buyout
Over 1,000 jobs have been lost, and 35 TGI Fridays branches have closed following a private equity-led rescue of the struggling UK restaurant group.
The deal, orchestrated by the backers of D&D London, secures 51 TGI Fridays restaurants out of administration, saving approximately 2,400 jobs. However, the rescue has been overshadowed by controversy surrounding the treatment of staff at the closed branches.
Reports emerged that workers were informed of their redundancies with as little as one hour’s notice via video calls, while others were locked out of their workplaces and notified through WhatsApp messages. Many staff members have been left uncertain about whether they will receive full pay or be reimbursed for accrued holiday pay and tips, according to the trade union Unite, which called the treatment “frankly appalling.”
The UK’s TGI Fridays owner, Hostmore, filed for administration last month after struggling with debts and poor trading. Despite initial hopes that more branches could be saved through negotiations with landlords, administrators at Teneo confirmed that 35 restaurants would close immediately, with 1,012 staff redundancies.
Julie McEwan, chief executive of TGI Fridays UK, expressed her devastation over the closures: “We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us. We are doing everything possible to retain our team and support those impacted.”
The new owners of the remaining TGI Fridays restaurants, private equity firms Breal Group and Calveton, also own D&D London, Byron Burgers, and Vinoteca wine bars. They plan to modernise the brand and build on its heritage, with a spokesman saying, “We are delighted to be working with such an enthusiastic and committed management team to both modernise the business and capitalise on the heritage of this iconic brand.”
TGI Fridays has faced increasing competition in the UK’s casual dining sector, which has been hit hard by economic pressures, shrinking discretionary spending, and rising operational costs. Daniel Smith, senior managing director of Teneo, noted that the deal “preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow.”
While the closures have deeply affected staff, the rescued branches offer hope for the remaining 51 restaurants and the employees who continue to work for the brand. As the hospitality sector continues to face challenges, TGI Fridays must modernise and adapt to survive in a competitive landscape.
Closed restaurants:
Barnsley, Birmingham, Bracknell, Brighton Marina, Bristol Cabot Circus, Cardiff Newport Road, Chelmsford, Cheltenham, Croydon, Derby, Dundee, Durham, Edinburgh Fort Kinnaird, Enfield, Gateshead, Gloucester Quays, Halifax, Jersey, Leeds, Leeds Trinity, Leicester, Lincoln, Manchester Royal Exchange, Newcastle Eldon Square, Newport, Northampton, Prestwich, Romford, Sale, Solihull, Southampton West Quay South, Speke, Sutton Coldfield, Swansea, Watford North
Surviving restaurants:
Bluewater, Trafford Centre, Meadowhall, Aberdeen Union Square, Metrocentre, Basildon, Glasgow Fort, Milton Keynes Stadium, Braehead, Wembley, Birmingham NEC, Glasgow, Junction 27, Castleford, Lakeside Quay, Teesside, Bolton, Norwich, St Davids, Doncaster, Lakeside, Fareham, Liverpool One, Stevenage, White Rose, Cribbs Causeway, Rushden Lakes, Stoke On Trent, Southampton, Silverburn, Watford Central, Aberdeen Beach, Braintree, Bournemouth, Stratford, High Wycombe, Cheshire Oaks, Walsall, Milton Keynes, Sheffield, Nottingham, Edinburgh, Coventry, Ashton-Under-Lyne, Telford, The 02, Staines, Crawley, Reading, Cheadle, Leicester Square
Read more:
TGI Fridays rescue leads to 1,000 job losses and 35 closures despite private equity buyout