Sacked TGI Fridays staff 'won't receive a penny' as dozens of restaurants close

Over 1,000 workers sacked by TGI Fridays “won’t receive a penny” from the company, it has been claimed.

The company announced on Monday that it would be closing 35 restaurants that were not acquired as part of a rescue deal, resulting in 1,012 redundancies.

Breal Capital and Calveton UK acquired 51 restaurants after the group’s previous operator fell into administration.

Two restaurants in Scotland – the outlet at Fort Kinnaird in Edinburgh and the venue in Dundee – are among the list of closures.

It's now official, over 1000 sacked workers across @TGIFridays won't receive a penny from a company that posted revenue of £190.7m last year alone. They must now go cap in hand to the Government, to be paid out by you the taxpayer.

This is despite TGI CEO Julie McEwan telling… pic.twitter.com/ONRTAeUzr6
— Unite Hospitality (@FairHospitality) October 8, 2024

Unite Hospitality, the union representing the staff, claimed on Wednesday that the workers won’t be getting any payout and called the layoffs “the most disgusting mass sacking since P&O”.

In a statement posted on social media, the union called for the company to be held accountable “industrially, legally and politically.”

The statement said: “It’s now official, over 1000 sacked workers across TGI Fridays won’t receive a penny from a company that posted revenue of £190.7m last year alone.

“They must now go cap in hand to the Government, to be paid out by you the taxpayer.

“This is despite TGI CEO Julie McEwan telling the press yesterday: ‘We are doing everything possible to retain our team and support those impacted.’

“This is the most disgusting mass sacking since P&O and this company must be held to account industrially, legally and politically.”

It’s understood that staff will only be eligible for redundancy pay and arrears through the Government’s Insolvency Service.

On Monday, Julie McEwan, chief executive of TGI Fridays UK, said: “The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole.

“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.”

Daniel Smith, senior managing director of Teneo, said the acquisition “preserves a significant proportion of jobs and will hopefully provide the business with the stability and support it needs to recover and grow”.

Seven restaurants will remain open in Scotland, including Aberdeen’s Union Square, Glasgow Fort, Braehead, Silverburn, Glasgow’s Buchanan Street, Aberdeen Beach and Edinburgh’s Castle Street.