When the world celebrated at midnight on Jan. 1, 2020, few foresaw the devastating yr that was to come. Previously, in November 2019, a deal was announced that TGI Fridays would quickly be bought. The firm would even be taken public on the inventory market. The complete worth was set to be $380 million.
TGI Fridays is poised to turn into a public listed firm once more after its mother or father firm, TGIF Holdings, agreed a sale to clean verify firm Allegro Merger Corp in a deal price $380m.
Blank verify firms are sometimes listed organisations with no operations that elevate cash from traders through an IPO for acquisitions.
TGIF’s holders will obtain a mixture of money and inventory valued at $30m and Allegro will assume roughly $350m of web debt.
At the time, Allegro CEO Eric Rosenfeld discovered TGI Fridays to be a lovely provide: “Fridays’ highly predictable stream of franchise and licensing revenue is very attractive and we believe that Fridays provides a compelling value to our shareholders.”
Restaurant Business Online even reported that the deal included one thing particular for shareholders: “An additional $2 million in Allegro shares will be paid to Fridays’ shareholders if the chain hits certain post-closing performance thresholds, which were not disclosed.”
Nation’s Restaurant News additionally revealed a story that included the “biggest evolution” that was set to come to the restaurant chain:
The greatest evolution coming to TGI Fridays is the model’s refocus on its bar scene. The restaurant chain was initially conceived as a singles’ bar 50 years in the past, and [TGI Fridays CEO Ray] Blanchette mentioned that he thinks the restaurant has gotten away from that unique imaginative and prescient.
“I think our bar is a major differentiator versus our core competition, and we believe it could be better leveraged to drive incremental traffic by offering high-quality value-focused social experiences,” Blanchette, left, mentioned. “So last week, in the Baltimore market, we kicked off this relaunch program with new drinks, new pricing, an enhanced atmosphere, bartender training, and unique marketing.”
A brand new slogan: “Happy hours are better than non-happy hours will be supported with increased digital and TV ad spending.”
Wheels have been in movement to revitalize the restaurant chain. The $380 million deal was set and prepared to go. However, that each one modified after March 2020.
It’s true that the $380 million deal to promote TGI Fridays and take the corporate public was canceled due to the COVID-19 pandemic.
On April 6, 2020, Restaurant Dive reported that the deal was off:
The merger between TGIF Holdings and Allegro Merger Corp. was canceled final week due to “extraordinary market conditions and the failure to meet necessary closing conditions,” in accordance to a regulatory filing.
As a end result, privately held TGI Fridays will not be going public.
Yahoo! Finance reported on the timing of the matter, which couldn’t have been a lot worse than it was.
“Obviously our timing was about as bad as you could hope for,” mentioned Blanchette.
“I mean, we were literally going to go public in March, March 30 was the deadline on the SPAC. Obviously, that is not our priority today, our priority is focused on our team.”
Almost two months later, on May 27, 2020, phrase got here down that 386 TGI Fridays places would close for good.
As of February 2021, it was not identified if a new or comparable future deal can be reached once more between TGI Fridays and a purchaser.