TGI Fridays UK sold in pre-pack deal for £1m

TGI Fridays UK was acquired in a pre-pack deal for £1m last month, according to administrators documents.

 

Sugarloaf TGIF Operations, a company owned by Sugarloaf, which manages the worldwide TGI Fridays brand, acquired the troubled casual dining chain from Liberty Bar and Restaurant Group, which operated the TGI Fridays brand under a franchise agreement with TGI Fridays Franchisor.

 

The sale saw the transfer of 1,384 employees, as well as the closure of 16 sites and 456 redundancies.

 

Sugarloaf TGIF Operations continues to operate 33 TGI Fridays restaurants across the UK.

 

In October 2025, Evolv Collection investors Calveton UK and Breal Capital sold TGI Fridays to Sugarloaf after acquiring the brand for nearly £10m in October 2024.

 

Documents filed on Companies House this week revealed TGI Fridays UK had struggled with trading underperformance and cashflow pressures during its first year of operation, aggravated by reduced footfall, increased supplier costs and macroeconomic challenges.

 

Administrators stated the company was “unable to generate sufficient cash to continue to pay its overheads, resulting in significant creditor stretch”.

 

As a case in point, for the year to 30 September 2025, TGI Fridays UK reported a loss after tax of £12.4m and an EBITDA loss of £3.2m.

 

In November last year, Interpath was appointed to explore a sale, refinancing, investment and restructuring process for the company.

 

At the date of their appointment, TGI Fridays UK owed £4.1m to Metro Bank and £4.5m to Sugarloaf TGIF UK Holdings. Ordinary preferential claims were estimated at £0.3m.

 

In January, the administrators succeeded in completing a pre-packaged sale of the business for £1,003,843.

 

However, analysts have warned TGI Fridays has an “overwhelming weakness” in its brand and will likely close further restaurants this year.

 

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