The future of TGI Fridays in the UK has been secured after its sale to the investors behind D&D London.
Breal Capital and Calveton have reached an agreement to acquire 51 of the chain’s 87 restaurants, securing over 2,000 jobs in the process.
However, this decision will result in the redundancy of 1,012 TGI Fridays UK staff across the remaining 36 locations.
The new owners said they hope that more restaurants could be saved, pending further discussions with landlords.
The sale ensures that TGI Fridays will continue to operate on the high street, following the administration of its UK owner, Hostmore, last month.
Julie McEwan, chief executive of TGI Fridays UK, said: “The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.
“We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.
“We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us. We are doing everything possible to retain our team and support those impacted.”
In recent weeks, there has been growing speculation about the future of the TGI Fridays brand, which was founded in New York in 1965 and made its UK debut in Birmingham in 1986.
McEwan said the group was “committed to continuing to evolve our proposition and to give our guests a great value for money experience'.
A spokesperson for Breal and Calveton stated that they intend to collaborate with the management team to “both modernise the business and capitalise on the heritage of this iconic brand”.
Breal and Calveton are experienced hospitality investors, having acquired the D&D London restaurant group last year. Calveton also supports Byron, while Breal's portfolio includes investments in the wine bar group Vinoteca and Black Sheep Brewery.
The Insolvency Service has provided guidance for TGI Fridays employees and creditors affected by the sale.
Law firm Freeths provided advisory services to Breal and Calveton regarding the deal.
The TGI Fridays UK restaurants remaining open are:
Aberdeen Beach
Aberdeen Union Square
Ashton-Under-Lyne
Basildon
Birmingham NEC
Bluewater
Bolton
Bournemouth
Braehead
Braintree
Castleford
Cheadle
Cheshire Oaks
Coventry
Crawley
Cribbs Causeway
Doncaster
Edinburgh
Fareham
Glasgow
Glasgow Fort
High Wycombe
Junction 27
Lakeside
Lakeside Quay
Leicester Square
Liverpool One
Meadowhall
Metrocentre
Milton Keynes
Milton Keynes Stadium
Norwich
Nottingham
Reading
Rushden Lakes
Sheffield
Silverburn
Southampton
St Davids
Staines
Stevenage
Stoke on Trent
Stratford
Teesside
Telford
The O2
Trafford Centre
Walsall
Watford Central
Wembley
White Rose