Restaurant chain TGI Fridays is facing significant financial difficulties and has put all of its UK restaurants up for sale. The company’s owner, Hostmore, experienced a near-total collapse in its share price, prompting the decision to sell the 87 restaurant sites across the country.
The decision to sell comes after Hostmore’s share price plummeted following the abandonment of plans to acquire additional outlets in the United States. Shares in the company fell drastically from 96p at the beginning of the month to just 22p, raising concerns about the survival of the TGI Fridays brand in the UK.
Originally launched in New York in 1965, TGI Fridays quickly became synonymous with casual American dining and celebrations, such as birthday parties and cocktail nights. The brand expanded to the UK in 1986, starting with an outlet in Birmingham, and grew rapidly due to its popular bistro-style dining experience. Its cultural impact includes training actor Tom Cruise for his role in the 1988 film ‘Cocktail’.
Hostmore, which spun out as an independent entity in 2021, acquired the chain a decade ago. The restaurants were briefly rebranded as ‘Fridays’ before reverting to the original name due to customer preference. However, the recent financial instability has put the future of the chain in jeopardy, with administrators now on alert.
The current sale process aims to convert the UK restaurants to a franchise model, which is anticipated to be completed by the end of the month. This move is expected to lead to the winding up and delisting of Hostmore from the London Stock Exchange. It remains uncertain whether all 87 restaurants will be saved, or if only a selection will continue to operate under new ownership.
The rapid decline in Hostmore’s share price has brought the company to the brink of administration. The outcome of the sale process will significantly impact the presence of the TGI Fridays brand on British high streets. The situation remains dynamic, with potential new owners being sought to revive the brand and its legacy in the UK.
The future of TGI Fridays in the UK is currently uncertain as the company’s owner, Hostmore, works towards a rapid sale of its 87 restaurant sites. The outcome will determine whether the beloved restaurant chain will continue to operate or face substantial closures.