TGI Fridays sale to Breal Capital and Calveton confirmed

The deal, which was reported to be on the verge of completion over the weekend and announced today (7 October), should secure the future of more than 2,000 jobs across those restaurants.

However, a further 36 TGI sites face closure with around 1,000 jobs at risk.

Reports late last month revealed that Breal and Calveton was in advanced negotiations to take on TGI Fridays’ UK franchise after the collapse of its previous owner, Hostmore.

Hostmore filed for administration in mid-September having abandoned an all-share acquisition of TGI Fridays’ US business.

It came after the US group lost control of TGIF Funding, which holds legal title to the franchise agreement royalties and other various fees and revenue from intellectual property of the TGI Fridays business.

Hostmore had been looking to offload its entire estate of 87 TGI restaurants, however, the sale to Breal and Calveton is based on 51 restaurants.

The new owners said they are hopeful that they may be able to secure further locations following discussions with the landlords, but according to the BBC, Hostmore’s administrators, Teneo, said the 36 other restaurants have been closed with immediate effect.

In a statement, Julie McEwan, chief executive of TGI Fridays UK, said: “TGI Fridays is a much-loved brand with a rich heritage. The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole. We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.

“We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us. We are doing everything possible to retain our team and support those impacted.

“We would like to thank our team and our loyal guests for supporting us during this transition. We are proud to serve millions of customers across the UK and are committed to continuing to evolve our proposition and to give our guests a great value for money experience that keeps them coming back to enjoy TGI Fridays time and again.”

Breal and Calveton acquired restaurant business D&D London last year, with the private equity partners also counting Vinoteca and Byron among their respective portfolios.

A spokesperson for the new owners said: “We are delighted to be working with such an enthusiastic and committed management team to both modernise the business and capitalise on the heritage of this iconic brand.”

Among the restaurants understood to have closed is Fridays And Go in Dundee, a fast casual offshoot of the TGI Fridays brand that launched in March 2022 but never expanded beyond a single site.

Freeths advised Breal Capital and Calveton Group on the acquisition of TGI Fridays UK.