TGI Fridays' UK operator has gone into administration, putting 4,500 jobs at risk as the casual dining chain grapples with significant debt and financial losses. Hostmore, the hospitality company that owns TGI Fridays in the UK, has put 87 of its restaurants up for sale in a bid to keep the iconic American-style brand running.
Despite the financial turmoil, Hostmore has reassured customers and staff that all restaurants "continue to operate normally," with no immediate plans to close any locations. The company is aiming to complete a sale by the end of September, which could secure the future of both the brand and the jobs at risk.
Earlier this month, Hostmore revealed that the sale process was in an "advanced stage," but noted that leading offers were lower than the company's debt, indicating it may not recover the full value of its assets. The company had also attempted to buy the US operator of TGI Fridays for £177m, but that deal collapsed.
The move into administration marks TGI Fridays as the latest casualty of the ongoing struggles faced by casual dining chains in the UK. A combination of shrinking footfall on high streets, the rise of online shopping, and the financial aftereffects of the COVID-19 pandemic have hit hospitality businesses hard.
Data from PwC highlights the broader trend, revealing that between January and June 2024, an average of 18 chemists, 16 pubs, and nine banks closed each week. TGI Fridays now faces an uncertain future as it seeks a buyer to navigate these challenging market conditions.
