Running the UK franchise for TGIF, Hostmore said on Wednesday that it has engaged administrators and delisted its common shares due to significant losses and growing debt, and that it was unable to find a “lasting solution” to salvage the company.
The hotel chain has already made an effort to balance its finances by selling off outlets, halting its expansion plan, and making significant cost reductions.
In an effort to preserve the brand name on British high streets and support job security, it has listed 87 of the chain’s restaurants for sale and plans to close a deal by the end of September.
According to Hostmore, the business with American influences “continues to operate normally and all existing stores remain open” in the interim.
Following the company’s announcement last week that it anticipated being “wound up” and de-listed following the completion of the sale of its retail locations, its shares fell more than 90%.
The group’s hopes of purchasing its US parent business were dashed, leaving its future in shambles.
After reaching a £177 million deal in April, the US company lost control of TGIF Funding and, consequently, the royalties from its profitable franchise agreements and intellectual property. This caused the deal to collapse.
The Caterer magazine announced that Teneo Financial Advisory Limited’s Daniel Smith and Julian Heathcote had been named joint administrators of the company.
