The UK operations of the iconic American restaurant chain TGI Fridays are facing renewed uncertainty just days before Christmas. Its parent company, Liberty Bar and Restaurant Group, has taken the dramatic step of filing a notice of intention to appoint administrators for the second time in a matter of weeks.
A Second Filing Casts Festive Shadow
The latest filing was made on December 19, following a similar notice submitted just two weeks earlier on December 5. This move places the future of the popular casual dining brand on a knife-edge during what is typically a crucial trading period.
Phil Broad, president of TGI Fridays international franchising, confirmed the action. He sought to reassure stakeholders, stating that the step was part of a strategy by the new owners, who assumed control last month, to secure the chain's long-term future in the UK market.
A Troubled Year for the Restaurant Giant
This development is the latest chapter in a tumultuous year for the chain. The UK business initially collapsed into administration in September, leading to the sale of 87 restaurants. A rescue deal was struck in October by investment firms Breal Capital and Calverton, saving dozens of sites. However, the deal resulted in the closure of 36 restaurants that were not included in the package.
The brand's challenges are not confined to the UK. In the United States, where TGI Fridays was founded in 1965, only around 200 locations remain open. A further nine of those may soon be sold to Mera Corp., an operator involved in the ongoing bankruptcy proceedings there.
Leadership Returns Amid Ongoing Challenges
In a bid to steady the ship, former CEO Ray Blanchette has returned to lead the company. Blanchette, who was CEO from 2018 to 2023 before returning earlier this year, acknowledged the significant headwinds facing the business. He told industry publication Restaurant Drive that "over the past decade, our business, and the category-at-large, has faced challenges."
The chain's peak came in 2008, with 601 restaurants in the US generating $2 billion in net revenue and a further 300 international locations. The downturn began with the 2009 recession, which triggered a sharp 24% drop in sales to $1.5 billion and a reduction in its US restaurant count to 480.
The repeated administration filings for its UK arm suggest the struggle to adapt and thrive in a competitive market continues, leaving employees and customers awaiting a definitive resolution.
