In a major shakeup for the UK hospitality industry, the operator of the popular restaurant chain TGI Fridays has gone into administration, putting 87 of its UK sites up for sale. This decision has left both employees and diners uncertain about the future of the brand on British high streets. The administration process began after a failed attempt by Hostmore, the parent company of TGI Fridays in the UK, to merge with its U.S.-based counterpart in a £177 million deal. Unfortunately, this ambitious move fell through due to management changes that prevented Hostmore from collecting crucial royalties from the brand. As a result, the company faced severe financial difficulties, leading to the current crisis.
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Administrators from Teneo have been brought in to oversee the sale of all 87 TGI Fridays locations, with hopes of securing new ownership by the end of September 2024. While the brand's restaurants continue to operate as normal during this period, it remains unclear whether a buyer will emerge to keep the full portfolio of locations running. If a sale is not completed, the well-loved American-themed diner may disappear from UK high streets altogether, leaving 3,000 jobs at risk.
TGI Fridays, which first opened its doors in the UK in 1994, quickly became a household name with its lively atmosphere and American-style comfort food, from burgers to milkshakes. However, recent years have been challenging for the chain, with UK sales dropping by over 10% in the last year alone. The business attempted a brief rebranding as “Fridays” in 2021, but it failed to gain traction, and the familiar “TGI” name was reinstated.
The collapse of Hostmore has also led to a dramatic drop in its stock value. After the news of the failed merger surfaced earlier in September, shares of the company plunged by more than 90%, leading to its suspension from the London Stock Exchange. With £35 million in debt, Hostmore has admitted it does not expect to recover meaningful value from the sale of the restaurants.
The future of TGI Fridays in the UK is still uncertain, but the chain’s international presence remains strong, particularly in the United States, where it operates 128 restaurants. Globally, the brand has over 270 outlets, keeping its American-inspired charm alive despite the UK’s struggles. Nevertheless, for loyal UK customers and employees, the ongoing administration process raises many questions about the future of a brand that has long been a staple of casual dining in the country.
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