Hostmore has entered administration and delisted its ordinary shares after failing to secure a viable solution to stabilise the business. This move follows the collapse of its plan to acquire its US parent company earlier this month.

Originally set to buy the TGI Fridays brand for £177 million, Hostmore’s deal fell apart when the American entity lost control of TGIF Funding, which manages royalties and intellectual property tied to the franchise. This setback caused Hostmore’s share price to plummet over 90% within the month, from 147 pence at its spin-off in November 2021 to just 0.2 pence.

On September 18, 2024, the London Stock Exchange suspended Hostmore’s ordinary shares from the FCA’s Official List at the company’s request. The board subsequently decided to file for administration. Daniel Smith and Julian Heathcote of Teneo Financial Advisory Limited have been appointed as joint administrators. The company’s ordinary shares are expected to be cancelled and wound up in due course.

In early 2024, Hostmore, the UK-based restaurant operator, reported significant financial challenges. The company, which operates brands like The Big Table Group and Cote Brasserie, faced declining revenues and increasing losses. This financial strain was attributed to a combination of high operating costs and reduced consumer spending. The company has also undergone multiple leadership changes in the last 6 months. 

Despite efforts to turn the business around, the company continued to face challenges from the broader economic downturnThe company’s struggles have had a ripple effect on the market, particularly within the casual dining sector. Analysts are closely watching how Hostmore’s restructuring will affect its long-term viability and its position in the competitive restaurant industry.

While in the middle of these difficulties, Hostmore is continuing to sell its portfolio of over 80 corporate stores, while its trading subsidiary, Thursdays (UK) Limited, remains operational and all stores continue to serve customers.