Hostmore, owners of the TGI Fridays UK restaurant chain listed on the London stock market has announced it is planning to appoint administrators to the business, questioning the viability of its 87 outlets and placing the future of 4,500 employees in doubt.
The American casual dining brand could soon become another restaurant chain brand to disappear from UK high streets after Hostmore said administrators from advisory firm Teneo would be appointed to attempt a sale of its restaurants. Thankfully for employees, the restaurants will continue to operate as normal in the interim.
Hostmore issued a statement predicting a sale would complete by the end of October but anticipated any sale generating less than its debts. As such, Hostmore will suspend trading of its shares, the value of which city analysts view as close to nil.
Hostmore’s recent attempted sell off, a £180 million takeover deal TGI Fridays in the US, collapsed last week after the main US franchise owner claimed to have lost the rights to royalties generated by the TGI Fridays name.
Hostmore shares this morning are trading at 0.19 per share, down 99.19% year to date.
It will be interesting in the days and weeks ahead to see if a suitor emerges and at what price the brand could be scooped up for.
