REG - Hostmore PLC - Business Update

HostmoreAnnouncement

18/09/2024 10:45

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RNS Number : 6997E  Hostmore PLC  18 September 2024

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INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

18 September 2024

Hostmore plc

Business Update

Further to its announcement on 9 September 2024, Hostmore plc (the "Company"
and, together with its subsidiaries, the "Group"), is providing an update to
the market.

Sale Process Update

The sale process for the Group's corporate stores remains ongoing, with
completion continued to be expected by the end of September. The Group's
trading subsidiary, Thursdays (UK) Limited ("Thursdays"), continues to operate
normally and all existing stores remain open.

Appointment of Administrators and Listing Suspension

As announced previously, the store sale consideration is expected to be below
the par value of the secured borrowings of Thursdays, and therefore it remains
unlikely that the equity owner of Thursdays, being the Company (Hostmore plc),
will recover any value for its ownership.  The Group previously disclosed
that the Company (Hostmore plc), being the listed non-trading holding company
of Thursdays, would be delisted and wound up. 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 has resolved to appoint Daniel Smith and Julian Heathcote of Teneo
Financial Advisory Limited as joint administrators of the Company.

The filing of administration by the Company will have no direct impact on the
operations of the trading subsidiary, Thursdays.

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 Board believes these actions are in the best interests of creditors and
other stakeholders of the Company.

Conclusion

The Board is immensely proud of all Hostmore colleagues, both in store and in
the support centre, who worked tirelessly to execute a turnaround programme
over the past 18 months and to deliver a successful result on the proposed
acquisition of TGI Fridays, Inc. ("TGI Fridays"). 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.

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 of the Board's control.

 

The person responsible for releasing the announcement is Matthew Bibby, CFO of
Hostmore plc.

 

ENDS

Enquiries

Hostmore plc

Matthew Bibby, Chief Financial Officer

Tel: +44 (0)330 460 5588

Email: enquiries@hostmoregroup.com (mailto:enquiries@hostmoregroup.com)

 

DGA Group

Jonathon Brill, James Styles

Tel: +44 (0)20 7664 5095

Email: Hostmore@dgagroup.com (mailto:Hostmore@dgagroup.com)

 

 

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