TGI Fridays owner Hostmore shutters another cocktail bar amid sales slump
TGI Fridays owner Hostmore said sales fell this year and confirmed the closure of another cocktail bar just three years after its launch.
The business behind the American style diner said its two remaining 63rd 63rd + 1st site in Scotland would close at the end of the month.
It follows the closure of two other venues across the UK after the group struggled to keep the bar and restaurant afloat.
The business launched the spin off in 2021 and it offered a slightly more refined dining experience compared to TGI Fridays.
It comes as the publicly listed chain unveiled a 10 per cent decline in sales over the 20 weeks to May but continues to perform ahead of 2023, with the first four months to the end of April higher by £3.3m.
The firm currently operates 89 TGI Fridays across the UK and employs approximately 4,380 staff.
Hostmore said the removal of the sites would help improve its earnings for the year ahead.
In April, the firm agreed to a £177m all-share takeover of the US based TGI Fridays, Inc.
The agreement will lead to Hostmore shareholders holding a 36 per cent stake in the enlarged business with TGI Fridays shareholders having 64 per cent.
At the time, Stephen Welker, chairman of Hostmore, said the deal “would reunite two businesses that are a natural fit, and were one business until as recently as 2014″.
“Hostmore has made good progress in executing its turnaround strategy over the past year by reducing costs, revising our capital allocation policy to focus on debt repayment and shareholder distributions.
“This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns, while also strengthening our ability to provide an exceptional guest experience by harnessing our distinctive, trusted brand as the home of celebrations.”