The American casual dining chain TGI Fridays has closed 16 of its restaurants in the United Kingdom, resulting in the loss of 456 jobs.
The remaining 33 locations will continue to operate after the business was sold in a rescue deal.
Interpath was appointed as the administrator for Liberty Bar and Restaurant group, which operated TGI Fridays in the UK, on Tuesday.
The business and assets of the TGI Fridays chain were immediately sold to a company owned by Sugarloaf, which is responsible for managing the TGI Fridays brand globally. Administrators indicated that the deal saved approximately 1,384 jobs.
Phil Broad, President of TGI Fridays International, stated, “We have worked closely in exploring all available options to ensure TGI Fridays’ long-term future in the UK, and we believe this is the best outcome for the company, as it retains jobs and provides a strong platform for success and growth.”
Ryan Grant, Managing Director at Interpath and joint administrator, said, “We are pleased to have been able to secure this deal through which this iconic brand will continue to trade in the UK.”
He continued: “Given this challenging period for everyone involved in the hospitality sector in general, this is considered a pivotal step in TGI Fridays’ medium-term transformation plan and provides the stable foundations necessary to begin moving forward.”
The 16 TGI Fridays locations that closed immediately include:
-
Ashton-under-Lyne, Greater Manchester
-
Doncaster, South Yorkshire
-
Staines, Surrey
-
Stevenage, Hertfordshire
-
Walsall, West Midlands
-
Bournemouth, Dorset
-
Telford, Shropshire
-
Reading, Berkshire
-
Coventry, Warwickshire
-
Edinburgh, Scotland
-
Crawley, West Sussex
-
Aberdeen, Scotland
-
Nottingham, Nottinghamshire
-
Sheffield, South Yorkshire
-
Stratford, Greater London
-
Braintree, Essex
Casual dining restaurants saw a 6% decrease in customer numbers last summer compared to the previous summer, according to a study conducted by Worldpanel by Numerator.
In December, a hospitality professional body warned that the sector could lose another 100,000 workers as a result of the Autumn Budget estimates.
The government stated that it is “protecting bars, restaurants, and cafes by mobilizing £4.3 billion in support within the package provided in the budget estimates.”
Last month, the street food chain Leon announced it would close 20 restaurants and eliminate jobs as part of a major overhaul.
Leon’s founders said they believe the company strayed from its core values under EG leadership, adding that internal challenges, changing work patterns affected by the coronavirus pandemic, and tax increases have all impacted the hospitality sector.
Leon’s move follows an announcement by Pizza Hut’s UK franchisee, which said it would close 68 restaurants and 11 delivery sites in October, eliminating more than 1,200 jobs.
Administrators stated that the Pizza Hut franchisee was affected by a combination of “challenging trading conditions and rising costs,” including “tax-related claims.”
United News Network – UNN Arabic
An independent media platform providing reliable news and objective analysis, seeking to promote peace and cultural dialogue worldwide, to convey the truth and build bridges of understanding between peoples.
For more news, you can visit our homepage:
