Restructuring experts at Teneo have been tasked with leading the hunt for potential buyers of the TGI diners in the UK as senior creditors attempt to recoup some of the money they lent the company.
Hostmore had outstanding borrowings of £35m at the end of last year and an estimated 3,000 jobs are also on the line.
A deadline has been set at the end of the month for any asset sales that will help to repay the company’s main lenders, NatWest and HSBC.
However, even if all sites are sold, the firm has said the money raised is unlikely to be sufficient to repay its debts in full, meaning it will be delisted and wound down less than three years after floating on London’s junior stock market.
A sale of its restaurants will not “recover any meaningful value”, Hostmore said, leaving Teneo poised to oversee any liquidation.
However, another firm could yet be appointed to handle the process, sources close to the process cautioned.
Rival chains may be tempted to cherry-pick restaurants in the most attractive locations but industry sources doubted that a single buyer for the whole estate will be found.
However, the TGI Fridays brand could survive if a new owner decided to take it on, company insiders stressed.