D&D London owners in talks over TGI Friday’s rescue deal
The deal is understood to include the chain's existing leases and the right to use the TGI Fridays brand in the UK
Breal Capital and Calveton, owners of D&D London, are reportedly in talks over a bid to rescue the UK operations TGI Friday’s, according to Sky News.
TGI Friday’s UK parent company Hostmore fell into administration last week (19 September).
Industry sources told Sky the deal was likely to see the new owners taking over the majority of its 89 sites, despite this it is still expected that a significant number of jobs will be lost.
One analyst estimated that between 50 and 60 TGI Fridays sites were commercially viable.
They said it was likely to mean the new owners would be able to save roughly three-quarters of TGI Fridays’ current UK workforce of about 3200 people.
The deal is understood to include the chain’s existing leases and the right to use the TGI Fridays brand in the UK.
Hostmore in a statement on the London Stock Exchange following the administration announcement said: “The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the Group’s capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12m, significantly reduce losses from unprofitable stores, and operate the group’s stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record.
“Unfortunately, all of the board’s efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board’s control.”