The British arm of the iconic American restaurant chain TGI Fridays is facing renewed financial turmoil just days before the crucial Christmas trading period. Its parent company, Liberty Bar and Restaurant Group, has taken the dramatic step of filing a notice of intention to appoint administrators.
A Second Filing in Two Weeks
This marks the second such legal filing in a fortnight, following an initial notice submitted on December 5. The latest action was taken on December 19, casting a shadow over the festive season for the chain's staff and customers. Phil Broad, president of TGI Fridays international franchising, confirmed the move but sought to frame it as a step towards stability under new ownership.
"The Directors of TGI Fridays UK can confirm that a notice of intent to appoint administrators was filed with the court," he stated. "This step brings the new owners, who assumed control last month, closer to securing and strengthening the long-term future of TGI Fridays in the UK."
A Troubled History and Recent Rescue
The UK operation's difficulties are part of a longer-term decline for the brand. Founded in 1965, TGI Fridays peaked in 2008 with 601 restaurants in the United States and $2 billion in net revenue, alongside 300 international sites. A sharp downturn began with the 2009 recession, which triggered a 24% sales drop to $1.5 billion and a reduction to 480 US locations.
In the UK, the chain collapsed into administration in September 2024, putting 87 restaurants up for sale. It was rescued in October by investment firms Breal Capital and Calverton, a deal that saved dozens of sites but resulted in the closure of 36 restaurants not included in the package. Former CEO Ray Blanchette, who led the company from 2018 to 2023, has also returned to steer the business.
Broader Challenges and an Uncertain Future
Blanchette acknowledged the sector-wide pressures, telling Restaurant Drive: "Over the past decade, our business, and the category-at-large, has faced challenges." The situation remains precarious in the brand's home market too, where just 200 US locations remain open. Nine of those may soon be sold to Mera Corp., a restaurant operator involved in the ongoing bankruptcy process there.
The back-to-back filings for administration in the UK indicate that the rescue deal has not yet fully stabilised the business. The move to appoint administrators is a legal mechanism that provides a company with temporary protection from creditors, allowing it to explore restructuring options or a sale. The timing, just before Christmas, highlights the severe financial pressure facing the hospitality sector and leaves the future of the UK's TGI Fridays restaurants hanging in the balance.
