TGI Fridays' UK owner's administration puts 4,500 jobs at risk

The UK branch of TGI Fridays has entered administration, putting 4,500 employees' jobs in jeopardy.

The owner of the restaurant chain, Hostmore, is facing financial difficulties, including significant debt and losses, which has led to the decision to sell 87 of its locations.

It aims to finalize a sale by the end of September, which would allow the brand to continue operating and help protect jobs.

Hostmore stated that the American-themed chain "is still running smoothly, and all current locations are open for business."

Earlier this month, Hostmore announced that the sales process was in a "mature phase," but noted that it was improbable they would "regain any significant value" from their assets.

It was mentioned that the top offers were lower than the company's debt, indicating that the company would incur losses if the sale goes through.

"The selling process is still in progress, and no choices have been made to shut down any current locations. TGI Fridays is still running its operations as usual all over the country," a representative from Hostmore informed the BBC.

Hostmore announced that it tried to acquire the American company that runs TGI Fridays for £177 million, but the agreement fell through.

Analyst Catherine Shuttleworth noted that when TGI Fridays first launched in the UK, it was a pioneer in the dining scene, introducing a variety of "American cuisine beyond just burgers" and providing "an enjoyable evening experience."

She noted that the chain has faced challenges due to shifting customer tastes towards healthier and vegan options.

The management has turned TGI Fridays into the newest casualty of the difficulties confronting casual dining restaurants and High Streets across the UK.

According to research by PwC, an average of 18 pharmacies, 16 bars, and nine banks closed their doors each week from January to June this year.

The rise of online shopping has led to a decline in customer traffic to High Streets, and the financial repercussions of the Covid pandemic are generally viewed as the two main challenges facing retail and hospitality sectors in the UK.