THE UK operator of TGI Fridays has entered administration, leaving the fate of 87 restaurants, including key locations in Wales, hanging in the balance. This move comes as Hostmore, which operates the brand in the UK, scrambles to sell its chain across the country.

In a recent development, administrators from Teneo have been appointed after plans to acquire the US-based parent chain fell through earlier this month. The collapse of these plans has cast a shadow over the future of the beloved American-inspired restaurant chain.

Among the affected branches are popular Welsh locations in Swansea, Cardiff and Newport. The staff now face uncertainty.

Hostmore has expressed hope in completing the sale of the UK restaurants by the end of September. This would not only keep the TGI Fridays brand alive on British high streets but also potentially save approximately 4,500 jobs across the UK. However, the company has cautioned that it does not expect to recover any significant value from the sale, indicating potential financial shortfalls for creditors and banks.

The uncertainty extends to whether a buyer will be found for the entire chain or only parts of it. This raises concerns about the potential closure of some of the 87 UK branches. TGI Fridays, which first opened in the UK in Birmingham in 1986, has become a familiar name in towns and cities nationwide.

Currently, the restaurants continue to operate as usual while the administration process unfolds. The collapse of the London-listed hospitality firm came after plans to merge with the US-based TGI Fridays Inc. for £177 million were abandoned. This merger would have created a larger entity remaining listed in London, but it was called off following a management change that would have prevented Hostmore from collecting royalties from the TGI Fridays brand.

Hostmore’s financial woes have been exacerbated by a 12% drop in sales this year compared to the previous period, attributed to unusually warm weather and weak consumer spending. The company’s share price plummeted by more than 90% following the announcement, leading to its suspension from the London Stock Exchange.

Hostmore’s brief tenure as a public company has been fraught with difficulties since its debut in November 2021. Its share price, which started at 147p, has suffered a dramatic decline due to profit warnings, mounting debts, and underperforming restaurants.

Russ Mould, investment director at AJ Bell, described the collapse of Hostmore’s expansion plan as a significant blow, suggesting little to no value left for shareholders. He noted that the US acquisition would have significantly increased Hostmore’s scale and given it a major presence in America, freeing it from an existing restrictive franchise deal.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, highlighted the potential for the brand’s survival, citing its continued operation in over 50 countries and loyal customer base. However, she suggested that a new owner might need to significantly reduce the number of UK outlets, focusing on successful locations like London’s Leicester Square.

The story of TGI Fridays began in New York in 1965, founded by Alan Stillman. It became a sensation known for its unique “Thank God It’s Friday” ethos and flair bartending. The brand expanded to the UK in the mid-1980s, bringing its Americana-inspired décor and menu to a new audience.

As the administration process continues, the full list of UK outlets at risk of closure includes:

• Aberdeen Beach
• Aberdeen Union Square
• Ashton-under-Lyne
• Barnsley
• Basildon
• Birmingham
• Birmingham NEC
• Bluewater
• Bolton
• Bournemouth
• Bracknell
• Braehead
• Braintree
• Brighton Marina
• Cabot Circus
• Castleford
• Cheadle
• Chelmsford
• Cheltenham
• Cheshire Oaks
• Coventry
• Crawley
• Cribbs Causeway
• Croydon
• Derby
• Doncaster
• Durham
• Edinburgh
• Enfield
• Fareham
• Fort Kinnaird
• Gateshead
• Glasgow Buchanan Street
• Glasgow Fort
• Gloucester Quays
• Halifax
• High Wycombe
• Jersey
• Lakeside Quay
• Lakeside Retail Park
• Leeds Junction 27
• Leeds Wellington Bridge Street
• Leeds White Rose
• Leicester
• Lincoln
• Liverpool One
• Liverpool Speke
• London Leicester Square
• London Stratford City
• London the O2
• Manchester Royal Exchange
• Meadowhall
• Metro Centre Gateshead
• Milton Keynes
• Milton Keynes Stadium
• Newcastle Eldon Square
• Newport Friars Walk
• Northampton
• Norwich
• Nottingham
• Prestwich
• Reading
• Romford
• Rushden Lakes
• Sale
• Sheffield
• Silverburn
• Solihull
• Southampton Retail Park
• Staines
• Stevenage
• Teesside
• Telford
• Trafford Centre
• Trinity Leeds
• Walsall
• Watford Central
• Watford North
• Wembley
• West Quay

The uncertainty surrounding TGI Fridays’ future in the UK has left many customers and employees anxious. While the brand has weathered many storms over the decades, it remains to be seen if it can survive this latest challenge and continue serving up its iconic American cuisine to British diners.

WALES’ beer and pub sector supports 44,000 jobs but urgently needs the upcoming Budget to help it so it can keep people in work, the trade body has warned.   

These figures demonstrate that people around the country depend upon the industry to keep them in work and put money in their pockets, the British Beer and Pub Association (BBPA) said.    

But despite this, pubs make an average of just 12p on every pint of beer once taxes and costs have been deducted.    

Now the BBPA is calling for a reduction in soaring costs of doing business. It says the industry needs the Budget to help it continue to invest in business and people and remain a home away from home in communities across the country.     

Emma McClarkin, CEO of the BBPA, said: “Our brewers and pubs are helping people around the country earn money, gain skills and experience, and support both the local and national economy. 

“From those pulling pints to the farmers growing the hops, so many rely on our treasured beer and pub sector for their livelihoods and careers.  

“But for the job market to flourish – and for us to keep supporting those jobs – it’s vital our sector is given the support it needs to continue.   

“We are urging the Government protect the Great British brewing and pub sector – the beating heart of our communities – to ensure it can remain a driving force for growth, jobs, investment and social value whilst keeping the price of a pint affordable for all.”  

The BBPA is calling on the Government to use the upcoming Budget to cut beer duty, reform business rates, and pledge to keep the 75% business rates relief so that pubs and brewers can keep people in work and support more jobs. 

A 5% cut in beer duty in the upcoming Budget would result in up to 12,000 additional jobs across the UK, mainly in pubs. This is due to the dynamic effects of increased prices at the bar reducing demand from consumers, who are sensitive to costs rising. Decreased demand for drinks in pubs leads to closures and job losses so keeping the price of a pint affordable will allow the sector to thrive and employ even more people.  

The industry is facing multiple burdens and restrictions in the form of proposed eyewatering packaging taxes and a potential beer garden smoking ban.   

The industry is one for the most heavily taxed business sectors per pound of turnover in the UK with tax making up 40% of UK brewing turnover and £1 in every £3 spent in pubs.   

The BBPA warns any additional price increases, on top of the inflationary pressures of the last few years, would tip many beer and pub businesses over the edge.  

THIS week Pembrokeshire County Council has refuted claims circulating on social media that it was responsible for The Range’s decision not to open a store in the former Wilko unit in Haverfordwest.

The rumors, which gained traction on Facebook this week, suggested that the discount retailer pulled out due to issues related to car parking charges in the nearby Perrots Road car park.

A council spokesperson addressed the situation, on Wednesday (Sept 18) telling The Herald: “There is absolutely no truth in the rumour that The Range decided not to take on the former Wilko store in Haverfordwest due to car parking charges in the nearby Perrots Road car park. The Council is unaware of where this rumour has come from.”

This statement comes in response to a flurry of social media activity, where several residents expressed their disappointment and frustration. One user, Stephen Hughes, sparked conversation with a post claiming, “Range wanted to go to Wilko and the council refused free parking at Haverfordwest absolutely shocking.” The post received multiple comments, reflecting the growing frustration among the community.

Chris Wilson said: “The council seemed determined to wreck Haverfordwest,” while Julie McIntosh added, “OMG we will never have them now.”

These sentiments echo a broader dissatisfaction with the current state of the Haverfordwest town centre.

The council, however, has made it clear that The Range’s decision was independent of any car parking policies. “While The Range ultimately decided not to proceed, the Council is currently in detailed discussions with a prospective tenant for the unit and very much hope to have the building brought back into use as soon as possible,” the spokesperson added.

The speculation on social media highlights the ongoing concerns about the town’s retail prospects and the council’s role in facilitating or hindering economic development.

Recent reports indicate that The Range is expanding in the UK, with five new branches opening by Christmas in locations such as Walkden, Cwmbran, Leamington Spa, Chelmsford, and Oswestry.

Additionally, The Range’s parent company, CDS Superstores, has announced plans to reopen up to 300 Wilko stores after acquiring the brand, with five concept stores expected to open by Christmas 2024

Despite Haverfordwest now being off the list, it remains to be seen how the situation will unfold and whether the prospective tenant will bring a new chapter to Haverfordwest’s retail scene.