TGI Fridays: 1,000 UK jobs to go despite rescue deal
Over 1,000 employees at TGI Fridays in the UK will lose their jobs, even after a rescue agreement was reached with the owners of the D&D London restaurant group.
They have acquired the British branch of the American-themed franchise following the previous owner's financial difficulties that led to administration last month.
The agreement will help preserve almost 2,400 positions across 51 restaurants, although the administrators, Teneo, indicated that 35 locations have shut down.
TGI Fridays UK announced that it is collaborating with property owners to secure an agreement aimed at reopening its shuttered restaurants.
"We are making every effort to keep our team and assist those affected," stated CEO Julie McEwan.
She expressed her deep sadness for the colleagues who will be departing from TGIs and extended her gratitude for their dedication and support throughout their time with the company.
The purchasers, Breal Capital and Calveton UK, are already the owners of restaurant chains Byron Burgers and Vinoteca, in addition to the restaurant group D&D London.
A representative for the new owners expressed that their goal is to "update the business while also taking advantage of the rich legacy of this well-known brand."
They mentioned that the agreement "maintains a large number of jobs and is expected to give the company the stability and assistance required for it to bounce back and expand."
Bryan Simpson, the lead organizer for Unite in the hospitality sector, described the way TGI Fridays' employees in the UK are treated as "a shameful situation for the country."
The union asserted that employees were prevented from accessing their jobs when certain locations shut down.
It has also mentioned that its members are unsure if they will get their salaries, vacation pay, or any tips they have earned.
When the BBC inquired about these claims, the company chose not to respond.
The following restaurants will be closing: Barnsley, Birmingham Hagley Road, 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, and Watford North.
Breal and Calveton finalized the agreement on Monday after Hostmore, the company that owns TGI Fridays in the UK, went into administration because of financial troubles.
Retail analysts attribute the downfall of TGI Fridays' UK operations to the chain's inability to modify its American-style, meat-centric menu in response to the growing demand for healthier food choices among consumers.
"According to analyst Catherine Shuttleworth, with a bit of funding and, even more crucially, a genuine passion, the brand can reestablish a strong connection with customers."
She pointed out that it was significant that the new owners decided to maintain locations in shopping centers and retail parks, as these are the places where younger customers and families prefer to spend their money.
TGI Fridays launched its inaugural restaurant in New York in 1965, followed by the opening of its first UK location on Hagley Road in Birmingham two decades later.
