The UK operator of TGI Fridays has entered administration, putting 87 stores up for sale and around 3,000 jobs at risk.
Hostmore, the parent company behind the popular American-themed restaurant chain, has appointed administrators from Teneo to handle the process.
The move comes after plans to buy the US-based TGI Fridays for £177 million fell apart earlier in September.
Sale of UK Restaurants Underway
Hostmore is actively trying to sell its 87 UK restaurants, aiming to finalize the sale by the end of September. The company hopes to preserve the TGI Fridays brand on British high streets.
However, it remains unclear if a buyer will emerge for all the outlets or only a portion. Despite the administration, all restaurants will continue operating as usual during the sale process.
The affected stores are:
- Aberdeen Beach
- Aberdeen Union Square
- Ashton-under-Lyne
- Barnsley
- Basildon
- Birminghm
- Birmingham NEC
- Bluewater
- Bolton
- Bournemouth
- Bracknell
- Braehead
- Braintree
- Brighton Marina
- Cabot Circus
- Cardiff Newport Road
- Cardiff St David’s
- Castleford
- Cheadle
- Chelmsford
- Cheltenham
- Cheshire Oaks
- Coventry
- Crawley
- Cribbs Causeway
- Croydon
- Derby
- Doncaster
- Durham
- Edinburgh
- Enfield
- Fareham
- Fort Kinnaird
- Gateshead
- Glasgow Buchanan Street
- Glasgow Fort
- Gloucester Quays
- Halifax
- High Wycombe
- Jersey
- Lakeside Quay
- Lakeside Retail Park
- Leeds Junction 27
- Leeds Wellington Bridge Street
- Leeds White Rose
- Leicester
- Lincoln
- Liverpool One
- Liverpool Speke
- London Leicester Square
- London Stratford City
- London the O2
- Manchester Royal Exchange
- Meadowhall
- Metro Centre Gateshead
- Milton Keynes
- Milton Keynes Stadium
- Newcastle Eldon Square
- Newport Friars Walk
- Northampton
- Norwich
- Nottingham
- Prestwich
- Reading
- Romford
- Rushden Lakes
- Sale
- Sheffield
- Silverburn
- Solihull
- Southampton Retail Park
- Staines
- Stevenage
- Teesside
- Telford
- Trafford Centre
- Trinity Leeds
- Walsall
- Watford Central
- Watford North
- Wembley
- West Quay
Rapid Expansion and Unexpected Collapse
TGI Fridays has long been a staple in the UK, with its American bistro-style dining format becoming especially popular with families.
The chain first opened in Birmingham and expanded quickly across the country.
The downfall of the London-listed company comes after a failed merger with US-based TGI Fridays Inc.
The plan would have combined the two operations, allowing the merged company to continue trading on the London Stock Exchange. However, management changes led to complications, particularly around the collection of royalties from the TGI Fridays brand.
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Shareholders Take a Hit
Hostmore’s financial troubles were exacerbated after the takeover deal collapsed. Shares in the company plummeted by over 90%, dropping to less than 0.2 pence per share.
As a result, Hostmore’s shares were suspended from trading, and the company is set to be delisted from the London Stock Exchange, effectively ending its run as a public entity.
Global Presence Remains Strong
While TGI Fridays faces challenges in the UK, its global operations remain substantial. The US remains its biggest market, with 128 restaurants, many of which are franchised. Worldwide, the chain operates more than 270 restaurants in various countries.
The Changing Landscape for Casual Dining
As Hostmore fights to keep TGI Fridays alive in the UK, the future of casual dining on British high streets is uncertain. The next few weeks will be critical in determining whether the iconic restaurant chain can survive under new ownership or if it will mark the end of an era for the UK market.
