Was a $380M Deal To Sell TGI Fridays Canceled Due to COVID?

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fairly difficult
The COVID-19 pandemic negatively impacted restaurants across the world, but the story of a TGI Fridays deal was unfortunately one-of-a-kind.
A $380 million deal to sell TGI Fridays that was announced in 2019 was canceled on March 31, 2020, because of the oncoming COVID-19 pandemic.

When the world celebrated at midnight on Jan. 1, 2020, few foresaw the devastating year that was to come. Previously, in November 2019, a deal was announced that TGI Fridays would soon be sold. The company would also be taken public on the stock market. The total value was set to be $380 million.

TGI Fridays is poised to become a public listed company again after its parent company, TGIF Holdings, agreed a sale to blank check company Allegro Merger Corp in a deal worth $380m. Blank check companies are typically listed organisations with no operations that raise money from investors via an IPO for acquisitions. TGIF's holders will receive a combination of cash and stock valued at $30m and Allegro will assume approximately $350m of net debt.

At the time, Allegro CEO Eric Rosenfeld found TGI Fridays to be an attractive offer: "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…
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