A significant proportion of TGI Fridays stores could close as its owner prepares to implement a pre-pack administration of the business, Sky News has reported.
Sugarloaf TGIF Management, the manager of the global TGI Fridays brand, bought TGI Fridays’ UK operations in November. The deal saw the firm taking control of almost 50 UK sites and preserving all 2,000 jobs at the time.
However, it is understood that Sugarloaf TGIF Management is now looking to significantly slim down the business through a pre-pack administration. While sources told Sky News that a deal is expected to take place next week, they warned that this could be delayed.
The insiders said a considerable amount of stores would be expected to close as part of a transaction, with one suggesting that between 15 and 20 sites could be shuttered.
If the pre-pack administration and store closures were to go ahead, it could result in hundreds of the brand’s UK workforce being made redundant.
Financial advisory firm Interpath has been lined up to manage the pre-pack administration.
A TGI Fridays spokesperson told Sky News: “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.”
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