Workers at one of the UK’s most recognisable high street restaurant chains have been told that their jobs are at risk as it finalises plans. A significant number of TGI Fridays restaurants are expected to close as part of a pre-pack administration plan, which involves job cuts. Sugarloaf TGIF Management took control of the chain two months ago, and insiders have now said as many as 15 to 20 of the chain’s 49 UK restaurants could close. 

However, delays could happen, and the final number of store closures is yet to be determined. Hundreds of TGI Fridays’ 2,000 staff members could be made redundant. Pre-packaged administration packages are set up to rescue viable parts of a business that are otherwise struggling. Once a deal is struck and a licensed insolvency practitioner (IP) is formally appointed as administrator, the sale goes through immediately. 

A deal is expected to take place next week. TGI Fridays said in a statement: “TGI Fridays UK is still assessing all options for the future of the business. No decisions have been made yet, and locations continue to operate as usual,” reports Sky News. 

TGI Fridays was put up for sale in November. This came just weeks after Sugarloaf TGIF Management bought it. 

At its peak, TGI Fridays had close to 90 restaurants across the UK. TGI Fridays originated in Manhattan in the 1960s and expanded worldwide a couple of decades later.

The first UK restaurant opened in the 80s, and it has become a staple of the high street since. 

If a pre-pack insolvency deal goes through next week, buyers can step in and take control of a business and/or its assets without inheriting its debts. 

The process is expected to be run by accountancy firm Interpath Advisory. Hospitality businesses have voiced anger over moves made by the Labour government, which they say are making it harder to operate. 

Increased National Insurance costs have led to widespread concerns from businesses, who have complained about higher operational costs as a result.Â