The manager of the bulk of TGI Fridays’ restaurants around the world has swooped to buy its British operations in a deal which preserves all 2,000 jobs at the chain. Sky News has learnt that Sugarloaf TGIF Management, run by former TGI Fridays chief executive Ray Blanchette, has struck a deal to take control of nearly 50 UK sites. Industry sources said the deal was likely to be announced within days.
The transaction will see TGI Fridays’ UK arm form part of a growing international consolidation of the brand under Mr. Blanchette. The British chain, which employs just over 2,000 people and is said to have a strong booking pipeline for the crucial festive trading period, was sold just over a year ago to Calveton UK and Breal Capital, two investment firms. The chain now operates from roughly the same number of restaurants as it did a year ago.
In a response to an enquiry from Sky News, a spokesperson for the two selling shareholders said: «After a prolonged period of due diligence, we are pleased to announce the sale of TGI Friday’s UK to Sugarloaf, the manager and custodian of the worldwide brand.» «During the 12 months of our tenure, we have stabilized the team and supply chains, as well as completing the first phase of repositioning the brand through a national relaunch on July 4th this year, which has seen improvements in both revenues and covers.»
The sale of the UK business comes during a tough period for the hospitality industry, which is grappling with a stagnating economy and the impact of tax rises in last year’s budget. Rachel Reeves, the chancellor, is under intense pressure not to raise business taxes further when she unveils this year’s budget late next month.
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