In a major restructuring move, TGI Fridays will close 35 of its UK restaurants, affecting 1,000 employees. Nevertheless, a deal with Breal Capital and Calveton UK will save 51 branches and 2,400 jobs, The Mirror reported.
The popular restaurant chain TGI Fridays has fallen into hard times. In fact, just last month, the company entered administration, signaling financial distress. This unfortunate development immediately impacted its operations and workforce.
Subsequently, TGI Fridays appointed administrators Daniel Smith and Julian Heathcote of Teneo to navigate through this fiscal turmoil. Their role became crucial following the collapse as they coordinated with potential investors to salvage what they could from the ailing chain.
Meanwhile, news of the collapse first surfaced in media outlets like Sky News, which reported over the past weekend that details of a deal to save part of the franchise were being finalized. This announcement clarified the uncertain future that the company had faced for weeks.
A glimpse of hope emerged with the announcement of a rescue deal. In particular, TGI Fridays secured an agreement with investment firms Breal Capital and Calveton UK. This deal serves as a critical lifeline for the company, ensuring that 51 of its restaurants will continue to operate and safeguarding approximately 2,400 jobs.
Julie McEwan, CEO of TGI Fridays UK, commented on the deal's significance. Moreover, she expressed optimism about the company’s future, emphasizing the beloved nature of the TGI Fridays brand and its strong heritage.
McEwan also recognized the incredibly challenging period for the casual dining sector and expressed gratitude to the workforce and customers supporting the transitional phase.
Additionally, McEwan acknowledged the difficulties facing those whose positions were made redundant. "We are devastated for our colleagues who will be leaving TGIs," she remarked, committing to support the affected employees through their professional transitions.
Amid these developments, Bryan Simpson of Unite Union voiced severe criticism of TGI Fridays' handling of the announcement and treatment of its workers.
Specifically, Simpson described TGI management's actions as both a "moral outrage" and potentially unlawful, castigating them for failing to provide adequate notice to employees about the closures and the administration process.
Furthermore, he disclosed that the company had informed press outlets of its financial woes before speaking directly to its workers, thereby creating an environment of uncertainty and distrust among the staff. "Now our members are being told that they may not even be paid wages for work done,” Simpson added, urging affected employees to contact the union for support and to secure their rights.
Despite the turmoil, Daniel Smith of Teneo shed light on the challenges the casual dining sector faces due to pressures on discretionary spending.
In particular, he believes the transaction with Breal Capital and Calveton UK not only preserves a significant number of jobs but also provides the business with a necessary foundation for recovery and growth.
Moreover, Smith thanked employees and stakeholders for their support during these challenging times, highlighting their role in stabilizing the business.
As TGI Fridays continues its restructuring, the company will focus on evolving its dining experience and sustaining its appeal to both loyal and new patrons.
Furthermore, as the company moves forward with operations under this new arrangement, all eyes will be on how TGI Fridays maneuvers through the recovery process and whether it can bounce back stronger in the demanding casual dining market.
To this end, the company has circulated the full list of outlets that will remain open, ensuring customers can continue to enjoy the distinct dining experience TGI Fridays offers.
