FAMILY favourite TGI Fridays has entered a pre-pack administration, abruptly closing 16 restaurants.
The restructuring saves 33 branches but will lead to significant job losses.
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The deal was structured as a “pre-pack” administration, a process that allows a company to sell its assets to a buyer without passing on historic debtsCredit: Alamy
The business and assets of Liberty Bar and Restaurant Group Limited, the operator of the British arm of the American-themed dining chain, have been acquired by Sugarloaf TGIF Operations Limited.
The transaction, completed immediately following the appointment of administrators, safeguards the employment of 1,384 staff members across the surviving network of restaurants.
However, the rescue package does not include 16 of the group’s locations.
These sites have ceased trading effective immediately, leading to 456 redundancies.
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The joint administrators have stated that providing support to the employees affected by these job losses is now a priority as they manage the closure of the non-transferring sites.
Ryan Grant and Will Wright of Interpath Advisory were appointed as joint administrators to the company on January 13, 2026.
They immediately executed the sale of the business and its assets to Sugarloaf TGIF Operations Limited, a specific entity owned by Sugarloaf, which is the existing manager and custodian of the global TGI Fridays brand.
The deal was structured as a “pre-pack” administration, a process that allows a company to sell its assets to a buyer without passing on historic debts.
This mechanism is often used to rescue viable parts of a distressed business, ensuring continuity of trade for the profitable portion of the estate while shedding liabilities that had become unsustainable.
Phil Broad, Global President of TGI Fridays, described the acquisition as the most viable path forward for the chain.
“We have been working closely to explore all available options for securing the long-term future of TGI Fridays in the UK, and believe that this is the best outcome for the business, preserves jobs, and offers a strong platform for success and growth,” he said.
Mr Broad added that the brand maintains a significant heritage in the British market.
Ryan Grant, managing director at Interpath and joint administrator, said: “We are pleased to have been able to secure this transaction which will see this well-known brand continue to trade across the UK.
“While these have been difficult times for hospitality operators generally, this marks a pivotal step in TGI Friday’s wider turnaround plan, putting in place stable foundations upon which it can begin to move forward.”
The 33 transferred restaurants will continue to operate under the new ownership without interruption.
FROM COCKTAILS TO CRUNCH TALKS
THE RED and white stripes of TGI Fridays first arrived on British shores back in 1986 with a grand opening in Birmingham.
The launch was a cultural phenomenon that introduced UK diners to loaded potato skins, Jack Daniel’s glaze and the theatrical flair of American cocktail bartenders long before Tom Cruise made it famous in the movies.
The brand was originally brought to the UK by brewing giant Whitbread and it quickly became the go-to destination for birthday parties and office celebrations across the country.
For decades the chain was a high street juggernaut that seemed untouchable as it expanded into major cities and shopping centres nationwide.
Ownership of the UK franchise eventually changed hands in 2007 when Whitbread sold the business and it was later snapped up by private equity firms before being floated on the stock market under the name Hostmore.
However, the last few years have proven difficult for the casual dining veteran as it struggled to adapt to changing tastes and the cost of living crisis.
The chain faced a disastrous period recently when a proposed takeover of the US parent company collapsed and its share price plummeted.
After entering administration earlier this year and closing dozens of sites, the once-dominant brand has been fighting to secure its future under new owners.
