The company behind TGI Fridays restaurants in the UK has collapsed into administration as it attempts to see all its 87 sites across the country.
London-listed Hostmore has appointed administrators from Teneo to oversee the process after plans to buy the US restaurant chain collapsed earlier this month.
The business said it hopes to sell all of its UK restaurants to new owners by the end of the month.
That would keep the TGI Fridays brand alive on British high streets, although it is not clear at this stage whether some or all of the restaurants are likely to find a buyer.
The American-inspired restaurant chain continues to stay open as normal while the administration process starts.
‘A very challenging set of circumstances’ for TGI Friday owner Hostmore
In a statement issued to the London Stock Exchange, Hostmore said: “The board is immensely proud of all Hostmore colleagues, both in store and in the support centre, who worked tirelessly to execute a turnaround programme over the past 18 months and to deliver a successful result on the proposed acquisition of TGI Fridays, Inc.
“The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the group’s capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12m, significantly reduce losses from unprofitable stores, and operate the group’s stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record.
“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.