UK ARM OF TGI FRIDAYS GOES INTO ADMINISTRATION – 4,500 jobs and 87 outlets are now at risk
The owner of the UK arm of the restaurant chain TGI Fridays (TGIF) has gone into administration, putting 4,500 jobs and 87 outlets at risk.
Hostmore, which runs the UK franchise for TGIF, has appointed administrators and delisted its ordinary shares after struggling to find a “lasting solution” to save the business amid heavy losses and mounting debts.
The hospitality company has already tried to balance its books by deep cost-cutting, pausing its expansion programme, management changes, and selling outlets. Currently, it has put 87 of the chain’s restaurants on the market and it hopes to complete a sale by the end of September, which would keep the brand running and help to secure jobs.
Earlier this month, Hostmore said the sales process was in an “advanced stage”, but added it was unlikely to “recover any meaningful value” of its assets. It said the leading bids were for less than the firm’s debt, suggesting it would be out of pocket if a sale is completed.
The firm’s shares crashed more than 90% last week after it said it expected to be “wound up” and de-listed once the sale of its retail outlets was complete.
Hostmore said it had attempted to buy the US operator of TGI Fridays for £177m, but that the deal collapsed.
