TGI Fridays takeover called off
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A blank-check acquisition company called Allegro Merger has terminated its $380 million takeover of restaurant chain TGI Fridays, which is owned by TriArtisan Capital Partners.
Why it matters: TGI Fridays is one of the world's largest eat-in restaurant franchisers, with more than half of its 842 stores located outside the U.S. Plus, its spinach and artichoke dip is downright delicious.
Details: Allegro last month pushed back the close date from March 30 to April 30, but says in a filing that the deal failure was a mutual decision based on "extraordinary market conditions and the failure to meet necessary closing conditions."
- Allegro will liquidate and return its IPO proceeds to shareholders.
The bottom line: "[The deal's] collapse will likely generate significant questions about the chain, which struggled with steeply falling same-store sales going into the merger and had $371 million in debt." — Peter Romeo & Jonathan Maze, Restaurant Business