The Covid-19 pandemic hasn’t been friendly to Friendly’s.
The restaurant chain announced Sunday that it has filed for Chapter 11 bankruptcy, according to a press release. The company has already entered into a sales agreement with Amici Partners Group, which invests in and runs eateries.
The sale price is less than $2 million, Restaurant Business reported. The filing isn’t expected to dramatically affect the chain’s more than 130 locations, nearly all of which should remain open. At one point, the chain had more than 500 locations.
“We believe the voluntary bankruptcy filing and planned sale to a new, deeply experienced restaurant group will enable Friendly’s to rebound from the pandemic as a stronger business, with the leadership and resources needed to continue to invest in the business and serve loyal patrons, as well as compete to win new customers over the long-term,” George Michel, CEO of FIC Restaurants, said in a statement.
Read more
Commercial
New York
Chuck E. Cheese parent, GNC file for bankruptcy
Commercial
New York
Le Pain Quotidien freed from 59 leases in bankruptcy
Commercial
New York
CEO says bankruptcy is not goodbye, Ruby Tuesday
This isn’t the first time the chain has entered bankruptcy: It filed for Chapter 11 protection in 2011, and ended up closing more than 60 restaurants. It exited bankruptcy in 2012, and was subsequently acquired by Dean Foods in 2016 for $155 million.
Amici Partners Group is an investment group affiliated with Brix Holdings, the parent company of chains like Red Mango and Souper Salad. The sale price
Other restaurant franchises have struggled since the pandemic hit. Among those who have filed for bankruptcy in recent months are Chuck E. Cheese parent GNC, Le Pain Quotidien and Ruby Tuesday.