TGI Fridays UK Administration Puts 4,500 Jobs at Risk

 he UK operator of TGI Fridays has entered administration, putting 4,500 jobs at risk. Hostmore, the hospitality company that owns the chain, is struggling with debt and significant losses, leading to the sale of 87 TGI Fridays restaurants. The company aims to complete the sale by the end of September in hopes of keeping the brand operational and preserving jobs.

Despite the situation, Hostmore stated that all existing stores are open and operating normally. Earlier this month, the company noted that the sales process was in an “advanced stage” but admitted that it was unlikely to recover meaningful value from its assets. The leading bids were below the firm's debt, implying that Hostmore could face financial losses if a sale proceeds.

Hostmore also revealed that it had attempted to acquire the US operator of TGI Fridays for £177 million, but the deal fell through. The administration of TGI Fridays highlights the broader struggles faced by casual dining chains and UK High Streets. According to PwC data, an average of 18 chemists, 16 pubs, and nine banks closed every week between January and June this year. The decline in High Street footfall due to the rise of online shopping and the lingering effects of the Covid pandemic are major factors contributing to these challenges.