TGI Fridays rescue deal nears completion
A rescue deal for TGI Fridays’ embattled UK operations is set to be finalised over the weekend, potentially saving over 2,000 jobs.
Breal Capital and Calveton, owners of restaurant group D&D London, are expected to acquire a majority stake in the American diner-inspired restaurant chain as soon as Monday, according to Sky News.
Final details are being negotiated between the buyers and administrators but the agreement is expected to cover 50 to 55 of the chain’s 87 locations.
Sources told Sky News at least 2,000 of its 3,000-strong workforce are likely to be retained however the deal may still result in around 1,000 job losses.
Breal and Calveton, which acquired D&D London last year, are expected to take on existing leases and keep the TGI Fridays brand rights in the UK.
London-listed Hostmore, TGI Fridays parent company, announced last month it had collapsed into administration, claiming “a very challenging set of circumstances” led to its decline.
In a statement issued to the London Stock Exchange recently, Hostmore said: “Unfortunately, all of the board’s efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board’s control.”
Although it said this would not affect Thursdays, the subsidiary owning the TGI Fridays franchise, the operating business later filed for a notice of intention to appoint administrators.
It follows the recent crumble of Hostmore’s £177m US restaurant deal, in which it planned to merge with the US operations of TGI Fridays to create a larger London-listed firm.
Breal declined to comment while Calveton could not be reached for comment.