Hostmore, the UK owner of TGI Fridays, is now seeking to sell its 87 restaurants in a bid to prevent the brand from vanishing.
TGI Fridays has two branches in Sussex, at Brighton Marina and Crawley.
The parent company said it had appointed administrators after plans to buy the US restaurant chain collapsed earlier this month.
It is in the process of trying to sell the UK restaurants to new owners, which it hopes to complete by the end of this month.
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An estimated 3,000 jobs are currently on the line across the franchise and could be saved if a new owner decides to take it on.
The announcement sent Hostmore’s share price plummeting by more than 90 per cent.
Russ Mould, an investment director at financial company AJ Bell, said it is “effectively game over for Hostmore as a listed business”.
He said: “The company’s share price crashed 90 per cent after an expansion plan went up in smoke, implying there is little to no value left in the listed business for shareholders.”
“Having operated under the TGI Fridays brand in the UK for some time, Hostmore had been trying to buy the global master franchise owner.
“The acquisition would have significantly increased Hostmore’s scale and given it a big presence in the US.”
The American-inspired restaurant chain is open as normal while the administration process starts.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Even though the chain had focused on reducing costs, and significantly reduce losses from unprofitable stores, it wasn’t enough to keep the business afloat. lure enough people through the doors.
“Clearly there was still a certain level of loyal love for the chain from long-time fans with guest scores having risen to record levels, but the turnaround wasn’t sharp enough. Given the brand recognition, its continued operation in more than 50 other countries, and the level of loyal custom, it’s unlikely to disappear from the UK scene completely. However, a new owner is likely to significantly reduce the number of outlets across the UK, and focus on its more successful restaurants such as in London’s Leicester Square.’’