The holding company behind the TGI Fridays chain in the UK has fallen into administration.

Hostmore, which runs around 90 of the US-themed cocktail bars and restaurants through its Thursdays trading subsidiary, cited a “highly challenging trading and macroeconomic backdrop” and an unsuccessful attempt to acquire TGI Fridays in the US as it announced the news.

Thursdays continues to operate normally, and all existing stores remain open, Hostmore said.

The appointment of administrators came just days after Hostmore walked away from the US acquisition and said efforts to find a buyer for its stores in the UK – a move designed to raise cash and move to a capital-light model - would be “unlikely… to recover any meaningful value for the group”.

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Shares collapsed as Hostmore said the listed non-trading holding company of Thursdays would be wound up and de-listed from the stock market, once the sale of the stores completes. The sale of the outlets is expected to complete at the end of September.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “It's a highly unwelcome Wednesday for the chain inspired by the expression Thank God It’s Friday. Its owner Hostmore has thrown in the towel and appointed administrators after plans to buy the chain collapsed last month.

“TGI Fridays bounded onto the UK restaurant scene in the mid-eighties with its Americana inspired décor and menus sating the appetite for US cuisine dining. UK consumers were in the middle of a love affair with all things American, with the brat-pack films top billing in cinemas, and Madonna and Whitney Houston top of the charts. Almost 40 years on, plenty of other rivals have stolen a march on its menu, the once unique décor seems dated and Asian fusion food seems to be a bigger draw for younger diners.

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“Even though the chain had focused on reducing costs, and significantly reduced losses from unprofitable stores, it wasn’t enough to keep the business afloat. 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.’’

Hostmore said the appointment of administrators would have no direct impact on the operations of the trading subsidiary, Thursdays, which runs the restaurants.

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

In a statement, Hostmore said: “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.”