The future of the TGI Friday’s brand in the UK is reportedly under threat, with news that the chain’s British operator has collapsed. Administrators from Teneo will now look for a buyer of Hostmore’s assets – putting 4,500 jobs at risk.

Founded in 1965 in New York, TGI Fridays aimed to combine classic American dishes such as burgers with a casual lively atmosphere. After initial success Stateside, the franchise branched out to the UK in 1994, and constructed a large chain of more than 80 restaurants across the country.

Life became more complicated, however, when in 2014 the UK chain was taken over by private equity group in 2014. As so often seems to be the case, the move led to a number of complicated financial gambles, which may have delivered a return on the investment for the new owners, but has cost the business itself dearly.

Electra exited in 2021, spinning out Hostmore as a new owner of TGI Friday’s UK in 2021. Electra listed the new entity on the London Stock Exchange, and as of the most recent reports, this left Hostmore with debts of £35 million – a burden which became untennable in early September 2024, as Hostmore dropped plans to buy the US wing of TGI Friday’s.

The complicated deal, reportedly valued at £180 million, was reportedly scuppered after the main US franchise owner said it had lost the rights to royalties and other payments generated by the TGI Fridays name. The news sent shockwaves through the stock market, with Hostmore’s share-value tumbling more than 90% in one day.

Now, it has been suggested that the TGI’s brand may disappear entirely from the UK highstreet. With Hostmore having fallen into administration, Daniel Smith and Julian Heathcote, professionals from consulting firm Teneo, are said to be focusing on the sale of assets to its rivals – a move which Hostmore has said would ultimately generate less money than its debts.

A release from the firm said, “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 the board’s control.

The news jeopardises the future of 87 outlets, and 4,500 staff across the UK. That comes even after Hostmore had pushed staff to accept large cuts to their conditions – which it said would be worth £12 million per year. These included scrapping free meals for staff working 10-hour shifts, often late at night.