TGI Fridays just got bought out by its largest franchisee after struggling for years

TGI Fridays has had a rocky past year.

TGI Fridays has been struggling for years as consumer tastes have shifted. Now new owners are on the way to the casual restaurant chain.

U.K.-based Hostmore, the chain’s largest global franchisee, has entered into an agreement to buy the U.S. operations of the company. The deal is expected to close in the third quarter of this year.

In January, TGI Fridays announced plans to close dozens of restaurants that were underperforming. Last October, the company switched CEOs, naming board member Weldon Spangler to the top spot.

Despite the rough months, TGI Fridays reported 2023 sales of $1.4 billion.

Officials are positioning the deal as a way to ensure the chain’s long-term stability and growth. The combined company will trade on the London Stock Exchange, though the company headquarters will remain in Dallas, Texas. Spangler will continue as CEO.

“We have been laser focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members,” Spangler said in a statement. “This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally. Hostmore is the perfect partner to help us achieve our vision.”

Hostmore currently operates 89 TGI Fridays locations in the UK. The combined entity will have 189 corporate-owned restaurants in the United States and the United Kingdom and nearly 600 restaurants in 44 countries.

TGI Fridays is currently controlled by private equity firm TriArtisan Capital Advisors, which also has ownership stakes in P.F. Chang’s and Hooters. After the deal is finalized, Hostmore will hold a 36% ownership stake, with shareholders holding the other 64%.

This story was originally featured on Fortune.com