The future of TGI Fridays in the UK is uncertain as its parent company, Hostmore, has entered administration, putting 87 UK restaurants up for sale.
Hostmore has appointed administrators from Teneo and is scrambling to find new owners to keep the TGI Fridays brand alive. The sale aims to be completed by the end of the month, but the company warns it may not recover enough to pay off its debts. Thousands of jobs are at risk as it’s unclear if all restaurants will be saved.
The collapse follows Hostmore’s decision to abandon a £177 million deal to acquire TGI Fridays’ US operations, a move that could have expanded the brand’s presence. Hostmore’s share price has plummeted by 96% this month, reflecting the financial strain. The company attributes declining sales, down 12% from last year, to warmer weather and weak consumer spending.
TGI Fridays, which first opened in the UK in the 1980s, became a staple for casual American dining, known for its lively atmosphere and signature cocktails. The chain’s popularity peaked in the 1990s, with its Covent Garden location once dubbed the busiest restaurant in Europe. However, in recent years, the brand has struggled, leading to its current financial difficulties.
Despite the uncertainty, TGI Fridays’ UK locations remain open and Hostmore is working to transition the brand to a franchise-operated model. The sale process, if successful, will mark the end of Hostmore’s tenure and see the company delisted from the London Stock Exchange.
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