Future of TGI Fridays’ UK Business in Doubt

The future of TGI Fridays’ UK business has fallen into fresh doubt just a month after the manager of most of the brand’s global operations bought the well-known casual dining chain.

Appointment of Financial Advisory Firm

Financial advisory firm Interpath has been appointed to consider strategic options for TGI Fridays’ UK business, which has 49 locations and employs almost 2,000 people. Interpath has begun contacting potential investors about a possible deal in recent days.

Recent Acquisition and Current Situation

This comes just weeks after the acquisition of TGI Fridays in the UK by Sugarloaf TGIF Management, a company led by the chain’s former managing director. The reason for the quick decision to market the company was unclear, although the start of an investment process at the start of the festive trading period will raise questions among potential bidders.

Statement from TGI Fridays International Franchising

In a statement, the president of TGI Fridays International Franchising said: "The directors of TGI Fridays UK can confirm that they are working closely with independent advisers to consider all available options to secure the long-term future of TGI Fridays in the UK."
“Since taking control last month, our priority has been to protect jobs, support our employees and continue to provide guests with the welcoming, celebratory experience they have come to expect from TGI Fridays.”
“These discussions are constructive and we will provide further updates as necessary.”

Background and Impact of Budget

TGI’s British chain was sold just over a year ago to Calveton UK and Breal Capital, two investment firms that are said to have stabilized the company’s performance. Although the hospitality sector was not as badly affected by the recent budget, it did not provide as much financial relief as the industry had requested.