TGI Fridays set to float on London Stock Exchange later this year

TGI Fridays
TGI Fridays (PA Archive)
11:40am, Fri 21 May 2021
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The owner of TGI Fridays has revealed plans to float the restaurant chain on the London stock market.

Electra Private Equity, which has owned the casual dining brand since 2014, said it plans to float it on the FTSE main market in the third quarter of this year.

The owner told investors on Friday that it has most recently valued the restaurant business at £146.2 million but it is expected to target a higher float price as the hospitality sector rebounds.

All 87 TGI Fridays restaurants, including its newly launched Lincoln site, are open after customers were welcomed indoors again on Monday for the first time in more than four months.

The board has decided that the optimal outcome for shareholders is likely to lie in a capital market solution for both businesses

Its eight Scottish restaurants have seen sales rise by 14% for three weeks since opening to dine-in customers last month, compared with the same period in 2019.

The first three days of trade in England since reopening indoors have shown 76% like-for-like growth against the same days in 2019, it added.

The company highlighted a “strong pipeline” of sites with three more TGI Fridays planned to open, as well as four sites under its New York diner-inspired 63rd & 1st brand.

Electra, which has significantly reduced its portfolio since an assault by activist investor Edward Bramson, has said it also plans to spin off its other key brand, Hotter Shoes.

The shoemaker and retailer was valued at £19.2 million and is due to float on the junior AIM index.

The business has reported 30% online growth over the past seven months after shutting 46 stores last year as part of a company voluntary arrangement (CVA) restructuring.

Neil Johnson, chairman of Electra, said: “The new management teams at our two remaining larger portfolio assets, Fridays and Hotter, have performed admirably through the pandemic, not just sustaining their businesses in the most difficult circumstances, but also transforming them.

“In light of this, and their potential for further significant longer term value creation, the board has decided that the optimal outcome for shareholders is likely to lie in a capital market solution for both businesses.”

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