TGI Fridays operator enters administration amid struggles to sell 87 restaurants

The collapse comes four years after closure of Belfast restaurant

The UK operator of TGI Fridays has gone into administration as Hostmore PLC works to sell its chain of 87 restaurants. Joint administrators from Teneo have been appointed to oversee the process, which Hostmore hopes to complete by the end of September, potentially preserving the TGI Fridays brand on British high streets and saving thousands of jobs.

Despite these efforts, Hostmore has warned that it does not expect to recover significant value from the sale, meaning the proceeds will fall short of covering its debts. It remains uncertain whether the entire chain will find a buyer or if only a portion of the restaurants will be sold.

For now, the American-inspired restaurant chain remains open, operating as normal during the administration proceedings.

Hostmore’s collapse follows the failure of a £177 million acquisition deal that would have merged it with the US-based TGI Fridays Inc. The merger, intended to form a larger company listed in London, was scrapped after a management change, which would have prevented Hostmore from collecting royalties from the TGI Fridays brand.

The news sent Hostmore shares plunging by more than 90%, reducing their value to less than 0.2 pence per share. Following this, the company’s shares have been suspended from the London Stock Exchange, and Hostmore is set to be delisted and wound up. Its last recorded share price was 0.19p.

Globally, TGI Fridays operates more than 270 restaurants, including 128 in the US, its largest market.