TGI Fridays is at risk of disappearing from high streets after reports that the hospitality group behind it is on the brink of collapse.
All 87 of the American diner chain’s restaurants have been put up for sale by its owner, London-listed company Hostmore after their share price plummeted by more than 90 per cent.
This came after they dropped plans to merge with US-based TGI Fridays Inc, to create a larger firm that would remain listed in London. When Hostmore dropped the takeover following a change of management, shares in the company were all but wiped out.
Hostmore has said it is not expecting to “recover any meaningful value” from the sale of stores.
Hostmore share price
Since the start of the month, the company’s share price has dropped by 96 per cent to just 22p yesterday, the Manchester Evening News reports.
Russ Mould, an investment director at AJ Bell, told the Evening Standard it is “effectively game over for Hostmore as a listed business”, adding: “The company’s share price crashed 90 per cent after an expansion plan went up in smoke, implying there is little to no value left in the listed business for shareholders.”
Founded in 1965 in New York City by Alan Stillman and a group of friends, TGI Fridays – Thank God It’s Friday – aimed to create a casual dining experience with a vibrant, lively atmosphere and a menu featuring American classics.
The chain made its debut in the UK in 1994, and went on to open in 87 locations across the country, including restaurants in London’s Leicester Square, the O2, Bluewater shopping centre and Manchester’s Royal Exchange.
87 locations
Ten years ago, the chain was acquired by a private equity firm, before the company was spun out into Hostmore in 2021.
This saw the restaurants briefly rebranded to just ‘Fridays’ before the original name was eventually restored.
But in the last couple of years, the business has struggled, with UK sales falling by more than a tenth this year compared to 2023, according to Hostmore.
All 87 branches of TGI Fridays are now being sold by Hostmore, with the aim of becoming a fully franchise-operated model. The sale process is expected to be completed by the end of the month, and is likely to result in Hostmore being wound up and delisted.
The UK restaurants will stay open as normal for now, but it has not been confirmed how many will be saved long-term, if any, or whether another chain will take over the locations.
Related: Domino’s withdraws Garlic & Herb dip