Mon, 05 Jan 2026 | ADMINISTRATION
Restaurant chain TGI Fridays is reportedly poised to undergo a pre-pack administration that could see a significant number of its UK restaurants close. The chain has filed two notices of intention to appoint administrators over recent weeks.
According to reports, the business’ new owner Sugarloaf TGIF Management, which only took control of the chain two months ago, is expected to implement the pre-pack administration this week.
The deal would see the owner buy back a slimmed down version of the casual dining giant, with plans to reportedly close between 15 and 20 of its 49 UK restaurants on a permanent basis. Such a move would result in hundreds of redundancies across its nearly 2,000-strong workforce.
A spokesperson for the company was quoted as saying that all options for TGI Fridays’ future were still being assessed, with no decisions made and all restaurant locations continuing to operate as usual.
The chain filed two notices of intention to appoint administrators in December, with both filed through Sugarloaf’s vehicle Liberty Bar and Restaurant Group. Sugarloaf had originally acquired TGI Fridays from Calveton UK and Breal Capital in October 2025.
Calveton UK and Breal Capital had previously acquired the business out of administration from London-listed Hostmore plc just a year earlier in a £9.5 million deal. At that time, the chain traded from close to 90 UK restaurants.
In accounts for the year to January 31 2023, Hostmore plc reported like-for-like sales of around £186 million, down from £192.3 million a year earlier, while cutting its EBITDA losses from £108.3 million to £25.5 million. At the time, its non-current assets were valued at around £186.1 million and current assets at £202.8 million, with net liabilities totalling £4.7 million.
According to previous owners Calveton and Breal, TGI Fridays had seen positive like-for-like sales growth during 2025. However, under Sugarloaf’s ownership, Interpath Advisory was appointed to explore options for the business in December. Interpath has also reportedly been lined up to handle the pre-pack administration transaction.
TGI Fridays’ struggles come amid broader headwinds impacting the UK hospitality sector, which has been hit by National Insurance increases and other tax hikes in recent government budgets, following years of trading affected by COVID-19 and economic uncertainty.
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