More than 1,000 TGI Fridays staff have been made redundant and 35 restaurants have closed with immediate effect.
It comes as the hospitality firm scrambled to sell its chain of 87 restaurants, including eight in Scotland, after plans to buy the US restaurant chain for £177m fell through.
On Monday, it was announced Breal Capital and Calveton UK acquired 51 restaurants after the group’s previous operator fell into administration.
But joint administrators at Teneo said 35 restaurants were not included in the sale and have been closed immediately, resulting in 1,012 redundancies.
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”.
New private equity owners Breal and Calveton jointly own upmarket restaurant chain D&D London, and between them have had investments in Byron Burger and wine bar chain Vinoteca.
Trade union Unite said on X, formerly Twitter, that it had been hearing from members who had been “furiously contacting” the hospitality organisers in response to the immediate closures.
It reported that staff had been shut out of restaurants, with padlocks on the doors changed, or given no form of redundancy consultation, while others were invited to a video call with members of the head office with one hour’s notice.
Other workers said they had not been told whether or not they will be paid, according to the trade union.
TGI Fridays’ previous UK operator, Hostmore, appointed administrators last month and had been hoping to secure a buyer for the chain.
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