TGI Fridays UK Operator Goes Bust! The company behind 87 TGI Fridays restaurants across Britain has plunged into administration. Hospitality giant Hostmore has called in joint administrators from Teneo, racing to sell the chain before the September deadline.
What Does Administration Mean for TGI Fridays?
The future of the popular American-style restaurant chain hangs in the balance. Hostmore wants to keep TGI Fridays alive on British high streets and save thousands of jobs, but the clock is ticking.
If a buyer steps in, it could stop a slew of closures. Yet, Hostmore recently admitted it doesn’t expect to “recover any meaningful value” from the sale, hinting that proceeds may fall short of paying creditors and banks. It’s unclear if the entire chain will be sold or only some restaurants will survive.
Will TGI Fridays Stay Open While in Administration?
For now, TGI Fridays outlets in the UK remain open business as usual. Fans can still enjoy their favourite cocktails and ribs while the drama unfolds behind the scenes.
Failed Takeover Deal Sparks Collapse
This collapse follows the scrapping of a £177 million takeover deal for US parent company TGI Fridays Inc. The merger would have kept the brand listed on the London Stock Exchange. But a management shake-up led to the deal’s demise and cut off Hostmore’s royalty income.
Hostmore’s share price crashed over 90%, now languishing under 0.2p. Trading has been suspended and the firm faces delisting and a full wind-up.
TGI Fridays Thrives Overseas Despite UK Woes
While the UK arm struggles, TGI Fridays continues to prosper in its home turf. The US market boasts 128 restaurants, plus over 270 global franchise sites spanning across the world.
