The UK operator of TGI Fridays, Hostmore, has gone into administration, putting over 4,500 jobs at risk.

The restaurant’s 87 venues have been put up for sale as the UK-based firm has struggled to tackle debts and heavy losses in the past 18 months.

The company said in a statement that the store sales are expected to be completed by the end of September, with the group’s trading subsidiary, Thursdays, continuing to operate normally, with all existing stores remaining open in the meantime.

It comes after the firm looks to acquire the US operator of TGI Fridays for £177m. However, the deal collapsed shortly after the initial offer.

The board has appointed Daniel Smith and Julian Heathcote at Teneo Financial Advisory Limited as joint administrators of the firm.

Hostmore has stated that the leading bids for the firm were currently less than the firm’s debt, meaning that should offers be accepted, it would be out of pocket following sale completion.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, 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 and 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 to lure enough people through the doors.

"Given the brand recognition, it’s 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."

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