Following a financial turmoil, TGI Fridays UK has struck a deal rescuing over 2,000 jobs, though 35 restaurants face closure.
- The rescue deal secured by Breal Capital and Calveton will save 51 TGI Fridays establishments across the UK.
- Despite saving many jobs, 1,000 positions will be lost due to the closure of several restaurants not included in the agreement.
- Julie McEwan, TGI Fridays UK CEO, remains hopeful for the brand’s future and aims to support affected employees.
- The acquisition was driven by pressures in the casual dining sector, aiming to restore stability and growth.
More than 2,000 jobs have been rescued thanks to a strategic deal involving TGI Fridays’ UK operations, as Breal Capital and Calveton acquire the business to save 51 of its restaurants from closure. This transition emerges from a challenging financial chapter where Hostmore, the former parent company, filed for administration owing to adverse economic pressures.
This agreement, however, comes with its challenges as 35 restaurants will shutter, leading to the unfortunate loss of 1,000 jobs. While the company lamented this outcome, it insists on doing everything feasible to assist the affected staff. The focus remains on maintaining current employees and aiding those impacted during this adjustment phase.
Julie McEwan, the Chief Executive of TGI Fridays UK, views this development positively, expressing confidence in the brand’s continued appeal to both loyal and new customers. McEwan emphasised efforts to retain staff and thanked both employees and patrons for their steadfast support amidst these changes.
The new owners, Breal Capital and Calveton, are optimistic about the brand’s potential to modernise and leverage its legacy. Daniel Smith from Teneo noted the broader context, stating that, “The casual dining sector has been adversely impacted by well-publicised pressures on discretionary spend,” highlighting the significance of the transaction in preserving jobs and stabilising the business.
The rescued restaurants span various locations across the UK, including prominent sites at Aberdeen Union Square, Birmingham NEC, and London’s Leicester Square, among others. Management is also contemplating negotiations with landlords for securing additional locations.
This strategic acquisition not only safeguards thousands of jobs but also positions TGI Fridays for a promising resurgence in the UK marketplace.
