Proactive Investors - Hostmore PLC (LON:MOREH), the UK operator of Americana-inspired restaurant chain TGI Fridays, has collapsed into administration and therefore been suspended from the London Stock Exchange.
Hostmore’s collapse comes after a failed attempt to acquire the global TGI Fridays brand from the US holding company.
“Unfortunately, all of the board's efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the Board's control,” the group stated today.
The board has appointed Teneo to oversee the administration process.
“Given the brand recognition, its continued operation in more than 50 other countries, and the level of loyal custom, it’s unlikely to disappear from the UK scene completely,” stated Susannah Streeter, head of money and markets, Hargreaves Lansdown (LON:HRGV).
“However, a new owner is likely to significantly reduce the number of outlets across the UK, and focus on its more successful restaurants such as in London’s Leicester Square.’’