TGI Fridays could vanish from the high street according to reports, as the group which owns it may be set to collapse.
The future of the restaurant chain is reportedly in doubt following a failed bid to buy the US owner of the brand, Hostmore.
There are 87 outlets of TGI Fridays in the UK, with administrators now reportedly on standby as the restaurant could disappear from the high street.
Russ Mould, an investment director at AJ Bell, said it is “effectively game over for Hostmore as a listed business”, adding: “The company’s share price crashed 90% after an expansion plan went up in smoke, implying there is little to no value left in the listed business for shareholders.”
“Having operated under the TGI Fridays brand in the UK for some time, Hostmore had been trying to buy the global master franchise owner,” AJ Bell’s Mr Mould explained.
“The acquisition would have significantly increased Hostmore’s scale and given it a big presence in the US.”
The brand’s biggest market is in the US where there are 128 sites, including franchised stores, as well as more than 270 in countries around the world.
Last year, total global restaurant sales hit 1.4 billion dollars (£1.1 billion).
Hostmore also revealed that UK sales have fallen by more than a 10th this year, compared with last year.
Over the first three weeks of July, sales dropped by nearly a quarter compared with the same period in 2023, as it was affected by warmer weather resulting in fewer visitors and continued weaker consumer spending.
Nevertheless, conditions started to improve slightly in September with sales declines slowing, the group said.
TGI Fridays was approached for comment.
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