The parent company of TGI Fridays in Britain is on the brink of collapse after a deal to acquire the American owner of the restaurant brand fell apart.
TGI Fridays Inc, of the United States, had agreed to be taken over by Hostmore, the owner of the UK operation, but the termination of an American corporate securitisation has scuppered the marriage.
The trustee of the securitisation is the entity that holds legal title to the franchise agreement royalties and other fees and revenues, but the trustee is now set to terminate the US group’s management of that securitisation.
Hostmore said the termination of the funding “compromises the control over the royalty stream of TGI Fridays and also potentially impairs the future revenue of the business”.