TGI FRIDAYS has confirmed that the Newport branch of the franchise will close, despite 2,000 jobs being secured by the sale of the restaurant chain across the UK.
American chain of restaurants, TGI Fridays, has confirmed that the branch in Newport city centre, located in Friars Walk, will close despite a new deal being made to secure the firm's future.
Daniel Smith, senior managing director of Teneo Financial Advisory Ltd who were appointed as administrators of the sale, said “The casual dining sector has been adversely impacted by well-publicised pressures on discretionary spend."
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The firm was bought by Breal Capital and Calveton UK, through its "acquisition vehicle" (the legal /Mr. Smith of Teneo, added: "This transaction with Breal Capital and Calveton UK preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow.
"We thank all employees and other key stakeholders for their support at this difficult time.”
After appointing Daniel Smith and Julian Heathcote of Teneo Financial Advisory Ltd, the sale of 51 sites was carried out, with a transfer of 2,389 employees.
35 restaurants, including the site in Friars Walk in Newport, were not part of the sale and have been closed "with immediate effect."
A spokesperson for TGI Fridays UK said this has resulted in 1,012 redundancies across the firm.
Read more: TGI Fridays to close 35 UK restaurants resulting in job losses
Julie McEwan, chief executive of TGI Fridays UK, said: “TGI Fridays is a much-loved brand with a rich heritage.
"The news today (October 7) marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.
"We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.
“We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us.
"We are doing everything possible to retain our team and support those impacted.
“We would like to thank our team and our loyal guests for supporting us during this transition.
"We are proud to serve millions of customers across the UK and are committed to continuing to evolve our proposition and to give our guests a great value for money experience that keeps them coming back to enjoy TGI Fridays time and again.”
TGI Fridays UK was founded by Alan Stillman in New York in 1965. Over 50 years, the chain has built a reputation across 51 countries. The British operations have been managed by franchisor Hostmore PLC since 2021.
Breal and Calveton have experience in the hospitality sector, with a portfolio including D&D London, Byron Burgers and Vinoteca.
Friars Walk were contacted for a statement but said they were unable to comment at this time.
If you have been affected by the closure, email newsdesk@southwalesargus.co.uk to let us know and help us to share your story.
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