TGI Fridays secures rescue deal but more than 1,000 UK jobs lost
A rescue agreement has been reached for TGI Fridays' UK division, as two private equity firms are set to acquire 51 of its locations. However, 35 additional restaurants will be shutting down, resulting in over 1,000 job losses.
Calveton UK and Breal Capital, the owners of high-end dining establishments like Le Pont de la Tour, Quaglino’s, and Coq d’Argent, have acquired 51 locations from the joint administrators at Teneo. This acquisition will lead to the transition of 2,389 staff members.
Teneo announced that 35 restaurants were excluded from the sale and have been shut down right away, leading to the loss of 1,012 jobs. The restaurants set to close are located in Barnsley, Chelmsford, Dundee, Durham, Leeds, Newcastle, Northampton, Halifax, and Swansea.
The shutdowns and layoffs prompted a furious reaction from Unite, the labor union. Unite Hospitality took to social media platform X to assert that employees were locked out of their workplaces and were given just one hour's notice to join a Zoom meeting at the head office.
Several TGI Fridays locations in the UK are shutting down all at once.
All morning, our members have been reaching out to us in a frenzy due to reports that:
???? Employees have been locked out of their workplaces, and the locks have been changed.???? There was no prior notice or discussion about layoffs.???? Workers are being told to leave...
Bryan Simpson, the Unite lead organizer for the hospitality sector, expressed his concerns, stating, "The treatment of workers at TGI Fridays today is downright shameful on a national level. Shutting down locations and denying employees access to their jobs without any warning is morally unacceptable. We are actively providing support to our TGI members during this very stressful time."
Teneo stated that it had no remarks regarding the union's post on X.
The rescue plan was announced just a few weeks after Hostmore, the parent company of TGI Fridays, hired the advisory firm Teneo to manage the business due to ongoing difficulties in reviving it. Throughout this process, the restaurants remained open and functioning while the administrators worked quickly to finalize a deal.
Daniel Smith, a senior managing director at Teneo, stated that the casual dining industry has faced challenges because people are spending less on non-essential items due to the current cost of living issues.
"This deal with Breal Capital and Calveton UK helps to maintain a large number of jobs and is expected to give the company the stability and backing necessary for recovery and growth," he stated.
Julie McEwan, the CEO of TGI Fridays UK, stated, "TGI Fridays is a beloved brand with a deep-rooted history. Today's announcement signifies a new and optimistic chapter for our company after facing tough times in the casual dining industry. We are optimistic about the future and believe that the TGI Fridays brand will keep drawing in both loyal customers and new visitors."
She expressed: “We are heartbroken for our team members who will be departing from TGIs and are grateful for their dedication and support.” Additionally, there is optimism that the group might be able to obtain more locations following talks with the property owners.
TGI Fridays was established in 1965 by entrepreneur Alan Stillman in New York, marking the debut of the casual cocktail bar and dining concept. Today, it has locations in 51 countries. In the UK, the brand has been run by the franchisor Hostmore plc since 2021.
TGI Fridays: Locations Set To Close Soon
West Quay South in Southampton
