TGI Fridays UK files for administration - with 12 London restaurants at risk

The UK operator of TGI Fridays has fallen into administration, with 12 London restaurants now at risk. Hostmore, who owns the UK franchise, is now scrambling to sell their 87 restaurants.

Hostmore said it had appointed administrators from Teneo after its earlier plans to buy its US parent company fell through earlier this month. The UK company saw its share price collapse in the last week after it dropped the plans to buy its outlets from the US owner for £177m, the Mirror reports.

Now the restaurant chain has put 87 of its UK franchise restaurants on sale with the hope of keeping TGIFs alive. The American-inspired restaurant chain will remain open as normal while the administration process starts, the Mirror reports.

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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 £12million, 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."

TGIF was first opened in New York in 1965, named in honour of the weekends - ‘Thanks God It’s Friday’. The chain first came to the UK with its Birmingham store, before becoming a popular dining destination around the country.

Full list of London restaurants:

TGI Fridays London Leicester Square

TGI Fridays London The O2

TGI Fridays London Stratford City

TGI Fridays Wembley

TGI Fridays Enfield

TGI Fridays Croydon

TGI Fridays Romford

TGI Fridays Watford North

TGI Fridays Watford Central

TGI Fridays Staines

TGI Fridays Lakeside Retail Park

TGI Fridays Lakeside Quay

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