TGI Fridays nears pivotal rescue deal for its British operations
Date
10/8/2024 8:26:15 AM
(MENAFN) TGI Fridays is nearing a pivotal rescue deal for its British operations, a move that could secure more than 2,000 jobs across the popular restaurant chain. Reports indicate that the agreement, involving Breal Capital and Calveton—investors who also own the upscale restaurant group D&D London—could be finalized as soon as Monday.
Sources suggest that an official announcement regarding the deal is imminent, pending the completion of the transaction. The agreement is anticipated to encompass between 50 and 55 of TGI Fridays' 87 locations, which would help preserve a significant portion of its workforce, currently totaling over 3,000 employees. However, it is expected that around 1,000 jobs may still be lost as part of the restructuring.
Last month, Hostmore, the parent company of TGI Fridays, announced plans to file for administration due to what it described as "a very challenging set of circumstances." Despite this, the company assured that the move would not affect Thursdays, its trading subsidiary that operates the TGI Fridays United Kingdom franchise. However, the operational arm later filed a notice of intention to appoint administrators, highlighting the urgent need for a financial restructuring.
Breal and Calveton, who acquired D&D London last year, are expected to include existing leases and the rights to use the TGI Fridays brand in the United Kingdom as part of their impending deal. The agreement represents a crucial lifeline for the brand and its employees, aiming to stabilize operations and set the stage for future growth in a challenging retail environment.
As the final details of the deal are being negotiated between the prospective buyers and the business administrators, the outcome remains a critical point of interest for employees, customers, and the broader restaurant industry in the United Kingdom. The resolution of this situation could mark a significant turning point for TGI Fridays as it seeks to navigate through financial difficulties and maintain its presence in the competitive dining sector.
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