TGI Fridays Enters Administration, Major UK Job Losses Despite Deal

Thursdays UK Limited, the operator of TGI Fridays in the UK, entered administration on October 7, 2024. Daniel Smith and Julian Heathcote from Teneo Financial Advisory Limited have been appointed as the Joint Administrators. A deal was finalized swiftly to sell 51 locations, which resulted in the transfer of approximately 2,389 employees. However, 35 restaurants were not included in the sale, leading to 1,012 job redundancies.

The administration marks a time of uncertainty for staff and creditors alike, with government officials pledging support for those affected. Employees dismissed as a result of the closures may be entitled to statutory redundancy payments through the Insolvency Service, provided certain conditions are met. The process involves receiving a case reference number from the administrators, who plan to contact dismissed employees within seven days of their appointment.

The sale of the remaining locations was reached with Breal Capital and Calveton UK, both existing owners of influential restaurant chains like Byron Burgers and D&D London. These acquisitions aim to modernize and preserve the well-known brand, assuring stability amidst the challenging economic factors that led to the administration. “We are doing everything possible to retain our team and support those impacted,” remarked Julie McEwan, the chief executive of TGI Fridays UK.

Despite the partial rescue, Unite hospitality lead organiser, Bryan Simpson, described the situation as “a national disgrace,” highlighting the concerns over the treatment of TGI Fridays’ UK staff. Renowned analyst, Catherine Shuttleworth, attributed part of the business’s failure to adapt its menu to reflect changing consumer trends towards healthier dining options. She noted that retaining locations in shopping centres and retail parks might benefit from family and younger diners.

The closures affect restaurants in locations such as Birmingham Hagley Road, Brighton Marina, Cardiff Newport Road, Edinburgh Fort Kinnaird, and multiple others across the UK. Breal and Calveton’s procurement follows the parent company’s downfall due to mounting debts and a shift in consumer preferences away from the chain’s American-style, meat-centric offerings.

TGI Fridays, which first opened in New York in 1965 and expanded to London in the mid-1980s, now looks to its new owners to reignite interest in the brand and execute a strategic turnaround to secure its future in the competitive restaurant market.