A COMPANY with a number of restaurants across Scotland has entered administration.
Hostmore, which is the UK owner of TGI Fridays, has appointed joint administrators from Teneo.
The news comes as the hospitality firm is in the process of trying to sell its 87 UK restaurants to new owners, which it hopes to complete by the end of September.
This would keep the TGI Fridays brand alive on the high streets and save thousands of jobs.
But it said earlier this month that it was not expecting to “recover any meaningful value” from the sale of sites, meaning it would earn less from the sale than it owes to creditors and banks.
It is also not clear whether it will secure a buyer for the entire chain, or whether it will manage to sell some but not all of the restaurants.
The American-inspired restaurant chain is open as normal while the administration process starts.
Here's a list of the sites in Scotland:
- Aberdeen Beach
- Aberdeen Union Square
- Braehead
- Edinburgh
- Fort Kinnaird
- Glasgow Buchanan Street
- Glasgow Fort
- Silverburn
The collapse of the London-listed hospitality business comes after plans to buy the US restaurant chain for £177 million fell through earlier this month.
It would have merged with US-based TGI Fridays Inc, to create a larger firm that would remain listed in London.
But the takeover plans were dropped after a management change which would have meant it could not collect royalties from the TGI Fridays brand.
Hostmore shares tanked by more than 90% after the news earlier in September, as shareholders took the brunt. Its shares are now worth less than 0.2 pence per share.
Its shares have now been suspended from the London Stock Exchange and the public company will be delisted and wound up.
TGI Fridays’ biggest market is in the US where there are 128 restaurants, including franchised sites, and it operates more than 270 in countries around the world.
