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Wed 18th Sep 2024 - TGI Fridays UK operator appoints administrators, Robinsons reports record turnover |
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TGI Fridays UK operator appoints administrators as sale talks continue: Hostmore, the parent company of TGI Fridays in the UK, has been put into administration. The company stated: “The sale process for the group's corporate stores remains ongoing, with completion continued to be expected by the end of September. The group's trading subsidiary, Thursdays (UK), continues to operate normally and all existing stores remain open. As announced previously, the store sale consideration is expected to be below the par value of the secured borrowings of Thursdays, and therefore it remains unlikely that the equity owner of Thursdays, being the company (Hostmore), will recover any value for its ownership. The group previously disclosed that the company (Hostmore), being the listed non-trading holding company of Thursdays, would be delisted and wound up. The board of the company has now resolved to file for administration of the company and, consequently, the listing of the company's ordinary shares has been suspended. The board has resolved to appoint Daniel Smith and Julian Heathcote, of Teneo Financial Advisory, as joint administrators of the company. The filing of administration by the company will have no direct impact on the operations of the trading subsidiary, Thursdays. The board continues to expect that, in due course, the listing of the company's ordinary shares will be cancelled and the company will be wound up. The board believes these actions are in the best interests of creditors and other stakeholders of the company. The board is immensely proud of all Hostmore colleagues, both in store and in the support centre, who worked tirelessly to execute a turnaround programme over the past 18 months and to deliver a successful result on the proposed acquisition of TGI Fridays Inc. The board inherited a very challenging set of circumstances, but a focus on reducing costs, revising the group's capital allocation policy and implementing both board and senior management changes, meant that the group was able to reduce annualised expenditures by £12m, significantly reduce losses from unprofitable stores, and operate the group's stores at a best in class efficiency level for the sector, all while improving guest scores to our highest levels on record. Unfortunately, all of the board's efforts to implement a lasting solution to support the long-term financial future of the business came against a highly challenging trading and macroeconomic backdrop, and efforts to create value for shareholders through the proposed acquisition of TGI Fridays, while well-advanced, encountered adverse events outside of the board's control.” Propel understands that as of last week, two unnamed family offices were running the rule over the UK arm of the brand, but that only one remains in the process – and even a successful deal could still see up to circa 20 sites close as part of any restructuring. Since the start of the month, Hostmore's share price has dropped by 96% to 19p. Hostmore features in the Premium Club Turnover & Profits Blue Book, which features 978 companies. Hostmore’s turnover of £190,700,000 for the year ending 31 December 2023 is the 63rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.
Host of operators to attend Talent and Training Conference: Large numbers of operators have booked places for next month’s Talent and Training Conference. The all-day conference takes place on Tuesday, 1 October at One Moorgate Place in London. It will focus on creating a company culture that attracts and retains great members of staff. Also new for this year are “parallel sessions”, which offer the chance to deep dive into specialist subjects. Among the operators attending are: KFC UK & Ireland, Fuller’s, Stonegate, Hawksmoor, The Big Table Group, Burger King, Loungers, The New World Trading Company, Nando’s, The Alchemist, Drake & Morgan, Wahaca, Caffe Nero, Revolution Bars Group, The Cornish Bakery, Jeremy King Restaurants, Frederic Robinson, Honest Burgers, Individual Restaurants, Sodexo, IHG Hotels & Resorts, Mollies, Korero, Bear Coffee, The Sababah Group, Turtle Bay, Flat Iron, ETM, Rosa’s Thai, WatchHouse, Mowgli, Caravan Restaurants, Incipio Group, Liberation Group, Breakspear, Simmons Bars, Buns from Home, Parkdean Resorts, Old Spike Roastery, Comptoir Group, Premier Inn, Popeyes UK, Inn Collection Group, Greene King, Oakman Group, Wagamama, Signature Group, Harts Group, Anglian Country Inns, Professionals at Play, Welcome Break, Big Fang Collective, MyLahore, Innventure, Laine Pub Company, Kerb, Toca Social, Gail’s, Roseacre Pub Company, F1 Arcade, Everards, Chilled Pubs, McManus Pub Co, Wildwood, Fazenda, Wetherby Whaler, McMullen & Sons, Iberica Restaurants, Immersive Gamebox, SFG Club, Fitzbillies, Almond Family Pubs, Windsor & Eton Brewery, Rhode Island Coffee, HB Leisure, Frontier Pubs, True North Brew and The Coastal Kitchen Family. For the full speaker schedule, click here. Tickets are £345 plus VAT for operators and £395 plus VAT for suppliers. Premium Club members get a 20% discount. Email: kai.kirkman@propelinfo.com to book places.
Robinsons reports record turnover, profit and investment: North west brewer and retailer Robinsons has reported record levels of turnover, profit and investment in 2023. It achieved turnover of £92.3m (2022 £83.1m) and delivered an increased operating profit of £6.1m (2022 £5.9m), despite the industry’s challenging trading conditions. The company reported its highest level of annual investment to date on both its brewing and pub estate, with a combined year’s investment of £20.7m (2022: £14.6m). Sixth-generation family members and joint managing directors, William and Oliver Robinson, said: “2023 was a momentous year at Robinsons as we completed our biggest year of investment to date, while also achieving strong profits for the business. We saw increased sales in our managed house estate. We attribute these achievements to the outstanding individuals who work for and with Robinsons, ensuring excellent beer and experiences for our customers. Alongside investing in our physical assets, we have invested in our people too. We have continued to champion our Aspire apprenticeship programme, train and develop our pub teams and grow pub support teams across the business. We have continued to champion the ‘Beer Crew’, a group of partners, managers and colleagues across the business who create our seasonal beer range and are passionate about shaping the future of beer at Robinsons. In 2023 and in the current year, we have seen the business experience increased costs in energy, food, and brewing raw materials. A group purchasing agreement has mitigated some of those energy costs, but volatility remains a threat. Assisting our pub partners with the update of our ‘greener retailing guide’ has allowed businesses to assess cost and energy savings they can make. While we can encourage our pub partners and managers to be looking to make energy savings and take appropriate cost saving decisions, the tax burden our industry faces is concerning. We hope the new government carefully considers the cumulative tax and cost burden pubs are facing. The government must give an extension to the current business rate support and give a reduction in beer duty in the forthcoming budget. Pubs and breweries are at the heart of many communities, government recognition of the cumulative impact these taxes have on our sector is key to the survival and success of many of our pub businesses.” Robinsons has continued to grow its managed houses, reaching 30 pubs and achieving record sales. The managed estate investments included the purchase of Hartford Hall, near Northwich, and the Craven Heifer, in Kelbrook. In total, Robinsons significantly invested in 25 pubs during 2023 and is in the process of installing a multimillion-pound brewery at its packaging centre, which will be operational in early 2025. This investment includes enhancements to the company’s beer production and enables it to increase the beer range and produce a greater range of seasonal and diverse beer. The company also conducted a share buyback and has taken on some debt as a result. The company said it continues to look for individual freehold pubs and/or small companies that match its portfolio to add to its estate.
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