TGI Fridays CEO buys back U.K. stores in Sugarloaf deal

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TGI Fridays’ remaining 49 locations in the U.K. have been sold back to the chain’s global management. Sugarloaf TGIF Management — founded by returning TGI Fridays CEO Ray Blanchette — purchased the stores as part of an ongoing plan to consolidate control of the struggling casual-dining chain, as first reported by Sky News. 

The deal follows Blanchette's return to Fridays leadership as CEO in January, and one year after the chain's Chapter 11 filing. During bankruptcy proceedings, he bid on multiple locations in the Northeast and Maryland. 

“This transition has been carefully planned to strengthen the TGI Fridays business in the U.K. for the long term,” a representative from Sugarloaf told NRN. “We’re establishing a U.K.-led management team and our immediate focus is on supporting our teams and delivering the welcoming, celebratory experience guests expect from TGI Fridays.”

This marks the third owner for TGI Fridays’ U.K. market in less than 14 months. In September 2024, Hostmore PLC — a former U.K.-based Fridays master franchisee — filed for administration and put its 87 stores up for sale. This filing — equivalent to Chapter 11 protection in the U.S. — occurred less than two weeks after its planned reverse takeover of Dallas-based franchisor, TGI Fridays, fell through. 

One month later, private equity firms, Breal Capital and Calveton U.K., jointly acquired 51 out of the 87 TGI Fridays stores put up for sale by Hostmore, while the remaining 36 stores closed immediately.

With this latest transition to Blanchette's leadership, Sugarloaf hopes to smooth choppy waters for both Fridays' U.K. market and the casual-dining chain globally.

The past decade has been turbulent for TGI Fridays. In 2014, the company was sold to TriArtisan Capital and Sentinel Partners, and at the time had more than 900 locations globally. In 2018, Ray Blanchette was named CEO, and the company made several operational and menu changes, while buying up franchised stores across the U.S. 

In 2019, Fridays’ sales began to drop, and the company closed dozens of restaurants. By 2020, Fridays’ store portfolio was down to under 400 locations, and a planned $380 million merger with Allegro Merger Corp. was called off. 

After ongoing challenges, Blanchette stepped down as CEO in 2023, founded Sugarloaf Hospitality, and continued to operate as a TGI Fridays franchisee. Blanchette’s replacement, Brandon Coleman III, stepped down as CEO after just two months in the job. Coleman was replaced by Weldon Spangler, who also left shortly thereafter. 

La historia continúa

With Blanchette’s return, TGI Fridays is focused on international development, particularly in markets like Dubai. 

“We recognize there’s work to do to get the business where it needs to be, and we’re committed to doing that carefully and responsibly,” the Sugarloaf representative said.

Contact Joanna at [email protected]

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