Rescue deal could save TGI Fridays from collapse

TGI Fridays could be saved from collapse, reports suggest.

The American-style restaurant chain's parent company fell into administration last week, with 87 restaurants, including seven in Greater Manchester, put up for sale and around 3,200 jobs put at risk. But now Sky News reports that Breal Capital and Calveton are in 'advanced negotiations' to take on TGI Fridays' British franchise.

The rescue deal could see the firm buying a slimmed down version of the chain, but would still likely result in hundreds of job losses.

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Sky News reports an analyst's estimation that between 50 and 60 TGI Fridays sites were commercially viable, which would mean the new owners could save around three quarters of the current UK workforce. Breal Capital and Calveton are the firm behind D&D London - owner of the capital's German Gymnasium and Quaglino's restaurants.

Last week Hostmore, the owner of TGI Fridays in the UK, said it had appointed administrators after plans to buy the chain collapsed. In a statement the company said: "Unfortunately, all of the board’s efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board’s control."