TGI Fridays has been sold in a rescue deal but the move led to the immediate closure of 35 out of the chain’s 86 branches including the outlet at Brighton Marina.
Dozens have lost their jobs locally as Breal Capital and Calveton UK bought 51 restaurants after the group’s previous operator fell into administration.
It means that nearly 2,400 jobs have been saved across the US-themed restaurant and cocktail bar chain.
But joint administrators at Teneo said that 35 restaurants were not included in the sale and have been closed immediately, resulting in 1,012 redundancies.
Julie McEwan, chief executive of TGI Fridays UK, said: “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 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.”
Daniel Smith, senior managing director of Teneo, said that the acquisition “preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow”.
New private equity owners Breal and Calveton jointly own upmarket restaurant chain D&D London and, between them, have had investments in Byron Burger and wine bar chain Vinoteca.
The companies said that they were “delighted” to be working with the management team to “both modernise the business and capitalise on the heritage of this iconic brand”.
Trade union Unite tweeted that it had been hearing from members who had been “furiously contacting” the hospitality organisers in response to the immediate closures.
It said that staff were shut out of restaurants, with padlocks on the doors changed, or given no form of redundancy consultation, while others were invited to a video call with members of the head office with one hour’s notice.
Other workers said that they had not been told whether or not they would be paid, according to the trade union.
TGI Fridays’ previous British operator, Hostmore, appointed administrators last month and had been hoping to secure a buyer for the chain.
Hostmore said that it was not expecting to “recover any meaningful value” from the sale of its sites, meaning that it would earn less from the sale than it owed to creditors and banks.
The companies did not disclose the value of the sale agreed with Breal and Calveton.
TGI Fridays was founded in New York in 1965 and continues to operate about 130 restaurants in America.
The business has grappled with weaker spending in Britain in recent years and said that it had been affected by a post-covid slowdown in demand across the casual dining sector.
Danni Hewson, head of financial analysis at AJ Bell, said that TGI Fridays was a brand “wrapped in nostalgia but one that the new owners are hyper aware needs to modernise to appeal to today’s diner”.
She said: “Keeping the essence of what made the business successful while finding a new direction won’t be an easy task and the new owners have carved off 35 branches they don’t feel confident taking forward.
“The buyers, Breal Capital and Calveton UK, have a good track record in hospitality and with more than 2,000 jobs saved the brand has a chance to rediscover its mojo.”
Feel sorry for all the people who lost their jobs today. Let’s wish them good luck in their future endeavours.
We chatted about visitor numbers the other day and the cost of parking. Though strictly speaking parking is ‘free’ at the Marina, you might have to question visitors numbers. What’s your thoughts on this.
Another sad loss to the city and just before Christmas too. Good luck to all the staff.
BHCC are now in a panic as a result of loss of Parking revenue which they themselves have caused. When you have decisions driven by dogma and not pragmatism, this is what happens. The ‘Green’ and cycling lobbyists are now up in arms about the possibility of more cars being encouraged into ‘our city’ and are pushing back on cllr Muten, who is very busy trying to permanently screw up traffic by implementing VG3.
The cycling lobby must be quite happy that tame Councillor Muten has installed new Beryl Bike racks at Withdean Stadium.
I mean, it’s got nothing to do with the article or the conversation we were having here, but okay Charlie.
Parking revenue which they themselves have caused. When you have decisions driven by dogma and not pragmatism, this is what happens. The ‘Green’ and cycling lobbyists are now up in arms about the possibility of more cars being encouraged into ‘our city’ and are pushing back on cllr Muten, who is very busy trying to permanently screw up traffic by implementing VG3.
For many it’s quicker and easier to drive from the city to Crawley than to battle your way through the town centre to the Marina.
I think you make a reasonable and balanced argument there.
In another aspect, hospitality has struggled since the pandemic and Brexit, and the cost of living crisis are all contributing factors at play here, and perhaps more impactful than parking, which, like you said, is free in the Marina. Although I cannot deny there is likely a contributing factor here.
Location-wise it’s tucked away as well, both within the city, and within the marina, so the footfall isn’t organic.
Thanks for the reply. To be fair, the Marina has lost it’s appeal, so many businesses have closed down or moved on. Spoons seem to do alright though. I think you’re right on the location, but lets be honest, with the terraces closed off its looks like a war zone down there and very unappealing for those taking a stroll and unaware what lies just the other side of wall, so to speak.
War Zone is a bit extreme. It’s perfectly reasonable down there, just not particularly interesting. My understanding is the rents are pretty high down there, and that potentially is another factor for businesses to not do too well down there. Feels like you’d want businesses that are decentralised in their delivery, so footfall isn’t a major factor, whilst also being specific enough that people naturally seek your business out.
Hospitality struggles with both of those aspects.
I would have gone but the £1 fee to get on to the pier left a bad taste in my mouth.
You probably shouldn’t try to eat coins, sir.
Had a lovely meal their on Friday served by a great team was taking family their this weekend for a birthday meal really gutted to see it’s closed
Good luck to all of the staff for ur future
Holly & Charlie x
Having worked at Cafe Rouge in Marina’s heydays, sad to see marinas decline taking down established names with it and resulting job losses!
Marina needs new Impetus!
Operators need Cooperation!
Owners need to invest to attract visitors!
BHCC are now in a panic as a result of loss of Parking revenue which they themselves have caused. When you have decisions driven by dogma and not pragmatism, this is what happens. The ‘Green’ and cycling lobbyists are now up in arms about the possibility of more cars being encouraged into ‘our city’ and are pushing back on cllr Muten, who is very busy trying to permanently screw up traffic by implementing VG3.
Not helped by having high prices, an uninspiring menu, and having Five Guys and Wetherspoons nearby. Reviews on TripAdvisor were quite negative.
Several restaurants at the Marina seem to have closed indicating it’s not a popular place to visit.
At least TGI Crawley is in a leisure complex with plenty of free parking.
I do think parking is only a minor factor here when compared to all these other aspects. I think the Marina is quite detached from the city, and maybe the work on linking it to Black Rock will change this?
I don’t see how improving cycle and walking access to the Marina will encourage that many people to visit.
Apart from the bowling and cinema there is little to do, and the 3 hour maximum parking discourages visiting a cinema followed by eating at a restaurant.
As a “Marina” it offers minimal nautical interest by being dominated by ASDA and apartments.
How did they survive for 40 years in the UK in the first first place, it was one of the worst chains to blight the country which given the competition is really quite some achievement.
Not a fan, I assume Terry. Just getting a slight hint.
A chain without a direct footfall path is always going to struggle; TGI’s is fine, I like the decor and the food is not bad but the chain is struggling nationwide so this is not just a Brighton issue. Unfortunately it doesn’t appeal to locals because there’s better food at better prices around the city and it doesn’t do well with Tourists because the only time you se it is when you’re sitting in Nando’s and go ‘oh look, there’s a TGI’s over there’. I’ve long had problems with the design of the Marina, not the aesthetic but just the basic layout does not lend itself to commerce. It’s too spread out with paths that lead nowhere or you keep having to double back. I’ve always loved the Marina but it needs an expert to replan how it all hangs together, at least from a commercial perspective.
Imagine a redesign would be quite a significant undertaking as well, and I suspect there’s not the available capital lying around for such a project. Just a thought, I wonder if the car parking space at ASDA was significantly reduced to accommodate new buildings, what effect that would have?