NOT
FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE
TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION.
This announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and
is disclosed in accordance with the Company's obligations under
Article 17 of MAR.
18 September 2024
Hostmore
plc
Business
Update
Further to its announcement on 9
September 2024, Hostmore plc (the "Company" and, together with its
subsidiaries, the "Group"), is providing an update to the
market.
Sale Process Update
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) Limited ("Thursdays"), continues to operate normally
and all existing stores remain open.
Appointment of Administrators and Listing
Suspension
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
plc), will recover any value for its ownership. The Group
previously disclosed that the Company (Hostmore plc), 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
Limited 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.
Conclusion
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. ("TGI
Fridays"). 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 £12 million, 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.
The person responsible for releasing
the announcement is Matthew Bibby, CFO of Hostmore plc.
ENDS
Enquiries
Hostmore plc
Matthew Bibby, Chief Financial
Officer
Tel: +44 (0)330 460 5588
Email: enquiries@hostmoregroup.com
DGA
Group
Jonathon Brill, James
Styles
Tel: +44 (0)20 7664 5095
Email: Hostmore@dgagroup.com