Both TGI Friday’s in Aberdeen are at risk after operator Hostmore plunged into administration.
Currently the American-style diner has two locations in the city, one at Union Square and the other at Aberdeen Beach.
It is one of the last remaining restaurants at Queens Links Leisure Park.
However, both sites are now up for sale – along with 85 other locations across the UK – after owner Hostmore collapsed into administration.
The UK-based company had been trying to purchase the brand in the US, but last week the deal fell through, leading to a sharp drop in Hostmore’s stock price.
For days, the company has been on the brink of collapse.
Today, the update was confirmed through a statement by Matthew Bibby, CFO of Hostmore to the London Stock Exchange.
TGI Friday’s could close following company collapse
He said: “The board of the company has now resolved to file for administration of the company and, consequently, the listing of the company’s ordinary shares has been suspended.
“The board continues to expect that, in due course, the listing of the company’s ordinary shares will be cancelled, and the company will be wound up.”
The statement thanked all Hostmore staff who worked “tirelessly to execute a turnaround programme” over the past 18 months.
It added: “The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the group’s capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12 million, significantly reduce losses from unprofitable stores, and operate the group’s stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record.”
Dates for when the two Aberdeen restaurants may close are currently unknown, however they are still taking bookings.
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