Vithanage Erandi Kawshalya Madhushani Jade Times Staff
V.E.K. Madhushani is a Jadetimes news reporter covering Business.
Hostmore Seeks Buyer for 87 Restaurants Amid Mounting Debt and Uncertain Future
The UK arm of TGI Fridays has entered administration, putting 4,500 jobs in jeopardy as the chain's owner, Hostmore, battles with mounting debt and significant financial losses. A total of 87 TGI Fridays restaurants across the country have been listed for sale, as Hostmore seeks to secure the future of the brand and prevent widespread closures.
The hospitality company hopes to complete a sale by the end of September, aiming to keep the popular American-inspired chain operating and safeguard jobs. Despite the situation, Hostmore has assured that all current TGI Fridays locations remain open and continue to function as usual.
Sale Process Faces Challenges Amid Debt Woes
Earlier this month, Hostmore announced that the sale process for the restaurant chain had reached an "advanced stage." However, the company warned that it is unlikely to "recover any meaningful value" from its assets, with leading offers coming in below the firm’s outstanding debt. This suggests that Hostmore may suffer financial losses even if a sale is finalized.
A spokesperson for Hostmore reiterated that no decision has been made to close any of the existing restaurants, stating, "The sale process remains ongoing, and TGI Fridays continues to operate normally across the country."
Hostmore had previously attempted to acquire the U.S. operator of TGI Fridays for £177 million, but the deal fell through, further complicating the company’s financial outlook.
Casual Dining Chains and UK High Streets Struggling
TGI Fridays is the latest casualty in the ongoing struggles faced by casual dining chains and retail businesses across the UK. Many companies have been forced to downsize or shut down entirely, amid shrinking High Street footfall and the lingering financial impact of the Covid 19 pandemic.
According to data from PwC, an average of 18 chemists, 16 pubs, and nine banks closed every week between January and June this year, highlighting the wider difficulties confronting the hospitality and retail sectors.
