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.
READ MORE: SNP depute leader: Westminster will not give another Section 30 order
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.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here