TGI Fridays is set to close 35 of its UK branches following a recent rescue deal, despite efforts to save the struggling restaurant chain. The closures come after Hostmore, the former owner of TGI Fridays UK, fell into administration last month.

The rescue deal sees Breal Capital and Calveton UK, owners of the D&D London restaurant group, acquiring TGI Fridays UK. While 51 branches will remain open, administrators Teneo have confirmed that 35 restaurants will be shut down immediately as part of the restructuring plan.

However, TGI Fridays UK remains hopeful that negotiations with landlords may save some of the closed locations. Julie McEwan, Chief Executive of TGI Fridays UK, expressed optimism for the brand’s future. “TGI Fridays is a much-loved brand with a rich heritage. Today marks the beginning of a positive future for our business, following what has been a very challenging time for the entire casual dining sector,” she said.

McEwan also acknowledged the unfortunate impact on the chain’s employees. “We are devastated for our colleagues who will be leaving, and we thank them for their loyalty and contribution. We are doing everything we can to retain as many of our team as possible and to support those affected.”

Hostmore’s collapse followed a sharp decline in its share price, which plummeted by over 90% after the company announced it expected to be “wound up” and de-listed following the completion of the restaurant sale. Hostmore had previously agreed to a £177 million deal to acquire its US-based parent company in April. However, the acquisition fell through when the American group lost control of TGIF Funding, the entity holding the franchise agreement royalties.

Despite the difficult period, TGI Fridays UK remains confident in its ability to weather the storm, with plans to revitalise the brand and attract both loyal customers and new guests in the months ahead.

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