The UK operator of TGI Fridays has gone into administration, putting 4,500 jobs at risk.
A total of 87 of the chain’s restaurants have been put up for sale as owner Hostmore, a hospitality company, struggles with debt and heavy losses.
It hopes to complete a sale by the end of September, which would keep the brand running and help to secure jobs.
Hostmore said the American-inspired chain “continues to operate normally and all existing stores remain open”.
Earlier this month, Hostmore said the sales process was in an “advanced stage”, but added it was unlikely to “recover any meaningful value” its assets.
It said the leading bids were for less than the firm’s debt, suggesting it would be out of pocket if a sale is completed.
“The sale process remains ongoing, with no decisions having been made to close any existing stores, and TGI Fridays continues to operate normally across the country,” a Hostmore spokesperson told the BBC.
Hostmore said it had attempted to buy the US operator of TGI Fridays for £177m, but that the deal collapsed.
Analyst Catherine Shuttleworth said TGI Fridays was a trendsetter when it first opened in the UK, selling “American food beyond the burger” and offering “a really great night out”.
However, she said the chain has struggled with “a change in customer preferences for healthier and vegan foods”.
The administration makes TGI Fridays the latest victim of the challenges facing casual dining chains and UK High Streets generally.
Data from PwC found that 18 chemists, 16 pubs and nine banks shut down every week on average between January and June this year.
The popularity of online shopping shrinking High Street footfall and the financial hangover from the Covid pandemic are widely seen as the two big issues hurting UK shops and hospitality businesses.