TGI Fridays UK Faces Potential Job Losses Amid Restructuring Plans
The future of hundreds of hospitality workers hangs in the balance as TGI Fridays UK’s current ownership considers a restructuring that could result in significant site closures across the country.
According to industry sources, Sugarloaf TGIF Management—which acquired the business just two months ago—is exploring a pre-pack administration process that may be executed in the coming week. The American-themed casual dining brand currently operates 49 restaurants across the UK.
According to reports the restructuring could affect a substantial portion of the estate, with estimates suggesting anywhere from 15 to 20 locations may face permanent closure.
However, the exact number of affected sites remains under discussion, and the timeline for any transaction could still shift.
The potential closures would have serious implications for TGI Fridays’ UK workforce of approximately 2,000 employees, with redundancies likely across affected locations.
Pre-pack administrations involve arranging a buyer for a company’s assets—without inheriting its debts—immediately following the formal appointment of administrators.
Interpath Advisory has reportedly been engaged to manage the process, with two notices of intention to appoint filed shortly before Christmas.
When approached for comment, a spokesperson for TGI Fridays UK stated: “TGI Fridays UK is still assessing all options for the future of the business. No decisions have been made yet and locations continue to operate as usual.”
Latest challenge for struggling sector
The difficulties facing TGI Fridays represent another setback for the UK hospitality industry, which has faced mounting pressure from increased national insurance contributions and other fiscal measures introduced in recent government budgets. Industry leaders have voiced strong concerns about the cumulative impact of these tax changes on business viability.
The chain’s current predicament follows a turbulent period of ownership changes. The business was placed on the market in November, mere weeks after Sugarloaf TGIF Management—led by former TGI Fridays chief executive Ray Blanchette—completed its acquisition.
Prior to this, the brand had been under the control of Breal and Calveton, during which time operational performance reportedly showed signs of stabilisation. That ownership period followed the chain’s separation from London-listed Hostmore, which had entered insolvency proceedings in 2024 when the estate comprised nearly 90 UK locations.