UK restaurant operator Hostmore to file for administration (updated)
18/09/2024 12:21
(Adds details on unit Thursdays in paragraph 3, background on
loss-making TGI Fridays outlets in paragraph 4)
Sept 18 (Reuters) - Britain's Hostmore MOREH.L said on
Wednesday it will file for administration, as the struggling
restaurant operator grapples with mounting debt.
The company also said trading of its ordinary shares will be
suspended. Hostmore's shares had debuted on the London bourse in
2021.
The company, which is the largest franchisee of TGI Fridays
in the UK, said filing of administration will not directly
impact its unit Thursdays, through which it operates the
restaurant chain.
Hostmore has been struggling with its loss-making TGI
Fridays outlets, and the losses from the retail outlets pushed
it to pause new store openings, undergo management changes, sell
outlets and implement deep cost cuts.
The company said on Wednesday it continues to expect to
complete the sale of its retail outlets by the end of September.
Hostmore last week dropped plans to buy TGI Fridays and said
it expected to be "wound up" and de-listed once the sale of its
retail outlets was complete, sending its shares crashing more
than 90%.
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by
Shinjini Ganguli)
((DhanushVignesh.Babu@thomsonreuters.com;))