TGI Fridays UK Operation Taken Over

Introduction to the Takeover

The manager of most TGI Fridays restaurants around the world, Sugarloaf TGIF Management, led by former TGI Fridays CEO Ray Blanchette, has taken over the UK operation. This move retains all 2,000 jobs at the chain, ensuring stability for the employees.

Details of the Deal

Sugarloaf TGIF Management has struck a deal to take control of almost 50 UK sites. Industry sources indicate that the deal is likely to be announced within a few days. The transaction will see the UK arm of TGI Fridays form part of a growing international consolidation of the brand under Mr. Blanchette.

Background of the UK Chain

The British chain, which employs just over 2,000 people, was sold to two investment firms, Calveton UK and Breal Capital, just over a year ago. During this period, the chain has stabilized and completed the first phase of repositioning the brand through a national relaunch. This has resulted in improvements in both sales and coverage. The chain now has about the same number of restaurants as it did a year ago.

Response from Selling Shareholders

A spokesperson for the two selling shareholders expressed satisfaction with the sale, stating that they are pleased to announce the sale of TGI Friday’s UK to Sugarloaf, the manager and administrator of the global brand. They highlighted the stabilization of the team and supply chains and the completion of the first phase of repositioning the brand.

Impact on the Hotel Industry

The sale of the UK business comes at a difficult time for the hotel industry, which is struggling with a stagnant economy and the impact of tax rises in last year’s budget. Chancellor Rachel Reeves is under intense pressure not to further increase corporate taxes when she presents this year’s budget at the end of next month.