British hospitality workers are facing job losses as the owner of TGI Fridays works on a deal to purchase a scaled-down version of the popular casual dining chain. Sugarloaf TGIF Management, which recently acquired TGI Fridays, is reportedly planning a pre-pack administration of the business, with potential closures of several of its 49 restaurants. The transaction could result in the redundancy of hundreds of employees.
The pre-pack insolvency process involves a buyer acquiring a company or its assets without taking on its financial liabilities immediately after administrators are appointed. Interpath Advisory has been enlisted to manage the pre-pack administration process, with speculations of significant site closures in the near future.
TGI Fridays UK is currently evaluating its options, and no final decisions have been made yet. The potential closures come amidst challenges in the hospitality sector, exacerbated by tax changes in recent Budgets.
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The chain was put up for sale shortly after Sugarloaf TGIF Management took over. Previous owners Breal and Calveton had stabilized the business, which was previously owned by Hostmore and had undergone insolvency in 2024, operating close to 90 restaurants at the time. The company has not provided details on the potential pre-pack deal.