TGI Friday owner calls in administrators, 4,500 jobs at risk
The American-themed restaurants will continue to operate as normal during the administration process. However, the Hostmore website is no longer accessible
Hostmore, the group behind TGI Fridays restaurants in the UK, has officially appointed administrators from Teneo Financial Advisors.
A total of 87 TGI Fridays restaurants have been put up for sale, endangering some 4,500 jobs. Hostmore said it is hopeful that all UK-based restaurants sell to new owners by the end of the month.
The American-themed restaurants will continue to operate as normal during the administration process. However, the Hostmore website is no longer accessible.
The news comes after Hostmore’s plans to acquire the US operator of TGI Fridays for £177m fell through earlier this month.
While the group managed to reduce annualised expenditures by £12m and reduce losses from unprofitable stores, the group said it inherited “a very challenging set of circumstances”.
Hostmore wrote in a statement to the London Stock Exchange: “The board is immensely proud of all Hostmore colleagues, both in store and in the support centre, who worked tirelessly to execute a turnaround programme over the past 18 months and to deliver a successful result on the proposed acquisition of TGI Fridays, Inc.
“Unfortunately, all of the board’s efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board’s control.”
