The future of the popular TGI Fridays chain in the UK hangs in the balance as its operator enters a critical 10-day period to secure a rescue deal and avoid collapse.
Administration Notice Filed in Last-Ditch Bid
Liberty Bar and Restaurant Group, which runs the UK operations of the American-themed chain, has filed a notice of intent to appoint administrators. This marks the third such filing by the company as it desperately seeks a more secure financial future. The legal move, filed on Wednesday, provides a temporary shield from creditors and grants the business another 10 days to find a new buyer or fresh investment.
Potential Impact on Restaurants and Staff
According to reports from Sky News, the proposed insolvency plan being finalised by Liberty could result in the closure of up to 20 of the brand's 49 UK sites. This would represent a significant reduction in the chain's national presence. The group employs approximately 2,000 staff members across its restaurants, whose jobs are now under threat.
Despite the precarious situation, it is understood that all UK restaurants will continue to operate normally for the time being. The company is working with restructuring specialists from the advisory firm Interpath to explore all potential options.
A History of Financial Struggles
This latest crisis follows a turbulent period for the brand in the UK. The previous UK operator fell into administration last year, with its remaining restaurants being acquired by private equity firms Breal Capital and Calveton UK. Liberty's current notice, filed on December 19, came just two weeks after a previous administration notice was submitted, highlighting the ongoing severity of its financial challenges.
TGI Fridays, first opened in New York in 1965, remains a major brand in the United States. The UK arm's struggle reflects the broader pressures on the casual dining sector, which has faced rising costs and shifting consumer habits. The group's leadership hopes this final window will allow them to preserve the long-term future of the iconic family dining brand in Britain.
