TGI Fridays rescue deal ‘being finalised’

This article was written by Restaurant Online Magazine. Click here to read the original article

As reported by Sky News​​​, more than 2,000 jobs are expected to be saved under the deal being finalised between the buyers and administrators to Hostmore, TGI’s UK owner, with an agreement expected in the coming days.

Sources said the deal was expected to include between 50 and 55 of the chain’s 87 sites, although final details are still to be ironed out.

Hostmore filed for administration last month​​ 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.

Breal and Calveton acquired D&D London last year and was reported to be in advanced negotiations to take on TGI Fridays’ UK franchise late last month​​.

At the time it was said to be unclear how much Breal and Calveton would be willing to pay for TGIs, although one industry source told Sky News​ they were confident in the company’s ability to run a slimmed down version of the business successfully.

The deal is understood to include the casual dining chain’s existing leases and the right to use the TGI Fridays brand in the UK.

Breal and Teneo declined to comment, while Calveton could not be reached for comment.