Update 5th January 2026
It is understood that TGI Fridays is likely to be sold next week in a Pre Pack Administration. It is reported that about 15-20 stores may close. This will mean the majority of the estate will disappear. It is expected that there will be hundreds of redundancies amongst the 2000 staff.
Sugarloaf acquired the chain from Breal Capital and Calveton UK in October of this year and immediately sought to sell it. However, it has been reported that the company filed a notice of intention to appoint administrators on the 5th of December.
The CVA would only really work if the main problem was high rents or just certain outlets needed to be closed down. The money that it owes its lender is no doubt secured so they have the power to call in administrators at any time.
Without knowing more about its exact financial position it is hard to say.
If the company does go into administration it is likely that a number of the restaurants, which are making money, will be snapped up by other restaurant groups and may continue to trade under the TGI brand. If not then the owners will take advantage of their prime locations.
Here is a quick guide to the legal realities of the administration process.
The Process: Administration is a legal “moratorium” that protects insolvent companies from creditor action. Licensed Insolvency Practitioners take control to either rescue the business or sell its assets to achieve a better result than immediate closure.
Who gets paid? There is a strict legal queue. Secured lenders (banks) and “preferential” creditors (employees and HMRC) are paid first. Unsecured creditors, including trade suppliers and customers, are at the back of the line and often receive nothing.
Employees: Redundancies often occur in the first 14 days. After this window, the administrator “adopts” remaining contracts, making ongoing wages a priority. Unpaid redundancy or notice pay can usually be claimed through the government’s Redundancy Payments Service.
Suppliers & Customers: Suppliers should negotiate “pro-forma” (upfront) terms for any new orders. For customers, gift cards and deposits are rarely honored. However, if you paid over £100 via credit card, you may be able to claim a refund under Section 75.
Written ByRobert Moore
Marketing Manager
Rob has over two decades of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at RMT to develop strategic marketing programmes to support the business plan and drive more company rescues.
A guide for redundant employees
A guide for redundant employees
If Your Retail Business Is Struggling A CVA Could Save It
If Your Retail Business Is Struggling A CVA Could Save It