TGI Fridays owner to offload 87 restaurants after collapse into administration
The UK operator of TGI Fridays is set to offload 87 restaurants by the end of September after collapsing into administration.
Hospitality company Hostmore – which owns the restaurant chain – has appointed Teneo Financial Advisory as administrators and delisted from the London Stock Exchange.
The group said the proceeds from the sale would be used to keep the TGI Fridays brand running in the UK, however they are expected to be insufficient to offset Hostmore’s debt.
Last week, Hostmore’s shares fell by over 90% after the group announced it expected to be “wound up” and de-listed once the sale of its restaurants was finalised.
In April, the group had agreed to a £177m deal to acquire its US-based parent company, however this fell through after the American group lost control of TGIF Funding, which holds the legal title to the franchise agreement royalties.
In a statement, Hostmore said: “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.”