Fri, 02 Feb 2018 | BUSINESS SALE
The owners of the UK division of US-inspired casual dining chain TGI Fridays is sounding out a possible sale, in the wake of a steep downturn affecting much of the sector.
Electra Private Equity, which acquired TGI Friday’s UK arm in 2014, is reportedly speaking to financial advisors to fully consider future options for its ownership of the restaurant chain.
Though it is believed that a full sale is the preferred option, Electra is also said to be looking at acquiring rival chains that have also been affected by financial troubles.
The news comes as many of the UK’s most familiar restaurant chains hit financial difficulty, amid higher labour, property and commodity costs and slashed profits.
Earlier this month Byron announced it would be considering a wide-ranging financial restructuring – pending a creditor vote this week – while in the past 12 months the Handmade Burger Co, The Restaurant Group and Prezzo have all sought outside advice regarding their futures.
TGI Fridays currently maintains 80 restaurants around the country and despite recent troubles is described as demonstrating “a resilient financial performance”. Sky News reports that sources close to the firm expect the chain to be sold rather than to consolidate the sector, even when many market players are distressed.
Founded in New York in 1965, the chain first arrived in Britain in the 1980s. Since then, ownership of its UK business has changed hands many times before Electra took over with a £225 million deal in 2014.
An Electra spokesperson declined to comment on the group’s plan for TGI Fridays.
A licensed restaurant in Brighton, East Sussex, featuring alfresco seating for 60 covers, is available for purchase.
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