The recent news of the UK operator of TGI Friday’s going into administration has raised concerns among customers about the future of the popular restaurant chain. Hostmore, the company behind TGI Friday’s, has appointed joint administrators from Teneo as it looks to sell its chain of 87 restaurants across the country. The company aims to complete the sale by the end of September in hopes of keeping the TGI Friday’s brand alive on British high streets and saving thousands of jobs in the process.
Impact on TGI Friday’s Operations
The administration process could potentially result in the closure of some TGI Friday’s restaurants if a suitable buyer is not found for the entire chain. Hostmore has expressed concerns about not being able to recover significant value from the sale of sites, which may mean that the company will not be able to repay all of its debts to creditors and banks. It remains uncertain whether the chain will be sold in its entirety or if only some of the restaurants will be acquired.
Despite the challenges faced by Hostmore, TGI Friday’s restaurants in the UK are currently open for business as usual. Customers can continue to visit their favorite locations for meals and drinks while the administration process unfolds. However, the future of the chain remains uncertain as the company navigates through this difficult period.
Failed Merger with TGI Friday’s Inc.
The collapse of Hostmore comes after its plans to acquire the US restaurant chain, TGI Friday’s Inc., for £177 million fell through earlier in the month. The proposed merger would have created a larger firm listed in London, but the deal was abandoned due to a management change that would have prevented Hostmore from collecting royalties from the TGI Friday’s brand. This setback has had a significant impact on Hostmore’s shares, which plummeted by more than 90% following the announcement.
Administrative Process and Market Impact
With Hostmore’s shares now worth less than 0.2 pence per share, the company has been suspended from the London Stock Exchange and will be delisted and wound up. This development has left shareholders reeling from the financial losses incurred as a result of the company’s administration. TGI Friday’s biggest market remains in the US, where it operates 128 restaurants, including franchised sites, and has a presence in over 270 locations worldwide.
Looking Ahead
As Hostmore works to sell its UK restaurants and secure the future of the TGI Friday’s brand, customers can expect continued operations at their local establishments. The outcome of the administration process will determine the fate of the chain and its employees, with hopes that a successful sale will preserve jobs and keep TGI Friday’s a fixture on the British high street. In the meantime, customers can continue to enjoy the American-inspired cuisine and vibrant atmosphere that TGI Friday’s is known for.