TGI Fridays has reached a rescue deal, ensuring its presence on UK high streets, but at a significant cost to some of its workers. The deal, which sees private equity firms Breal Capital and Calveton purchasing 51 of the chain’s restaurants, comes at the expense of more than 1,000 jobs as 35 locations were left out of the agreement, resulting in their immediate closure.
The rescue package secured nearly 2,400 jobs across the remaining sites, but the 1,012 employees impacted by the closures now face uncertainty. In an alarming development, some workers were locked out of their workplaces without notice on the morning of the closures, leaving them in a precarious position. This comes amidst ongoing concerns raised by staff who say they have not yet been informed whether they will receive their final pay.
The Workers Union has previously reported on the struggles of the casual dining sector, highlighting the impact of pandemic-related debt and rising operational costs. Hostmore, the parent company of TGI Fridays, filed for administration last month, citing crippling debts as the primary cause. In our recent coverage, we explored the broader challenges faced by workers in hospitality and the ripple effect of these closures on communities across the UK.
The Fallout: 35 Sites Closed, 51 Rescued
The immediate closures have affected popular locations, including restaurants in prime shopping destinations such as Aberdeen Union Square, Bluewater, and Birmingham NEC. Those left out of the deal are likely to face permanent closure, with no immediate plans for reopening.
The 51 saved locations span key sites in major cities and shopping centres, such as the Trafford Centre in Manchester, Meadowhall in Sheffield, and Leicester Square in London. These branches are set to continue trading under their new owners, Breal Capital and Calveton, who have a track record of investing in the hospitality sector, having previously backed D&D London, Byron Burger, and Vinoteca.
Leadership Response
Julie McEwan, chief executive of TGI Fridays UK, expressed mixed emotions about the news. “The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole,” she said. “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.”
While the rescue deal has safeguarded the future of almost 2,400 employees, it is clear that the hospitality sector remains fragile. The rapid closures have left many workers without clarity on their financial future, while those who remain employed now face the challenge of adapting to new ownership and potentially shifting business strategies.
The Workers Union Says…
“This situation sheds light on the ongoing turbulence in the UK’s casual dining sector, which has been hit hard by the combination of pandemic recovery, inflation, and debt burdens. TGI Fridays’ rescue deal follows similar crises at other chains, suggesting that further consolidation in the sector could be on the horizon.
The Workers Union will continue to monitor developments, especially regarding the treatment of staff who have lost their jobs, and the potential long-term impacts of this deal on workers across the UK.”
