Rescue deal on the horizon for TGI Fridays

A rescue deal for the ailing TGI Fridays restaurant chain is reportedly close to being finalised.

Breal Capital and Calveton, the joint owners of D&D London, could reach a deal to acquire the business as early as today, according to Sky News.

The deal is expected to include up to 55 of TGI Fridays’ 87 sites and save around 2,000 jobs.

Hostmore, the parent company of TGI Fridays in the UK, appointed administrators last month, blaming a “highly challenging trading and macroeconomic backdrop”.

It came after Hostmore’s plans to buy TGI Fridays’ US parent company for £177m fell through after the American company lost control of TGIF Funding, which controls the royalties from its lucrative franchise agreements and intellectual property.

Both Calveton and Breal Capital have history in buying up struggling hospitality businesses. Calveton acquired the beleaguered Byron burger chain in 2020, while Breal Capital took on wine bar chain Vinoteca, as well as Yorkshire’s Black Sheep Brewery and London craft brewers Brick Brewery and Brew By Numbers last year.

Read more: TGI Fridays: could a new owner keep the party going?