American diner chain TGI Fridays faces an uncertain future as reports emerge of its parent company, Hostmore, teetering on the edge of collapse. With Hostmore’s share price plummeting by 96% and plans to acquire US outlets abandoned, TGI Fridays has taken the step to put all 85 of its UK restaurants up for sale in a bid to secure a swift sale by the end of the month.
Founded in 1965 in New York, TGI Fridays made its way to the UK in 1986, quickly becoming popular for its casual American bistro-style dining experience. Known for its entertaining staff, referred to as Dub Dubs, the chain offered a unique dining atmosphere with jokes, banter, and tableside performances. Over the years, TGI Fridays grew in popularity, with the Covent Garden branch in the early 90s being dubbed Europe’s busiest restaurant.
In recent years, Hostmore rebranded the chain to ‘Fridays’ but later reverted to the original ‘TGI Fridays’ due to customer recognition. However, a decline in sales has led to the current situation where Hostmore is looking to sell its UK restaurants to move towards a franchise-operated model. The sale process is being managed by restructuring experts at Teneo, with potential buyers being sought to repay the company’s main lenders, NatWest and HSBC.
With over 3,000 jobs at stake and the fate of TGI Fridays hanging in the balance, the sale of the UK restaurants could mark the end of Hostmore as a listed entity on the London Stock Exchange. Despite the uncertainty, the New York-inspired food and cocktail menu at TGI Fridays’ UK locations will continue to operate as usual. The future ownership of all or some of the restaurants remains unknown, with details awaited on potential buyers stepping in to take over the iconic chain.
As the situation develops, the parent company, Hostmore, has yet to provide official comments on the matter. The potential impact on employees and customers of TGI Fridays across the UK awaits further clarification. Stay tuned for updates on this evolving story.