Friendly's Files Bankruptcy
10/5/11


The parent of the Friendly's restaurant chain filed for Chapter 11 bankruptcy protection on Wednesday and said that it has already closed 63 of its stores.

Each store employed about 20 people, so about 1,260 jobs were lost.





The 76-year-old company known for its ice cream and hamburgers is the latest restaurant chain to file for bankruptcy, as consumers continue to eat out less, a habit they picked up during the recession, and food costs remain high.


Friendly's said the economic downturn coupled with higher costs and high rents drove it to file for bankruptcy protection.

"The strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position," said CEO Harsha V. Agadi.





Friendly Ice Cream Corp., based in Wilbraham, Mass., says it has secured $70 million in financing and that its 424 remaining restaurants will stay open and pay employee salaries and benefits as it reorganizes under bankruptcy protection.

Gift cards will continue to be honored. Friendly's now employs about 9,000 workers.





Its current owners, Sun Capital Partners, will be the lead, or "stalking horse" bidders, in an auction process.

The company filed for bankruptcy protection at the United States Bankruptcy Court for the District of Delaware.

The bankruptcy court will determine the long-term fate of the chain.

http://www.huffingtonpost.com/2011/10/05/friendlys-bankruptcy_n_988607.html?icid=maing-grid7%7Cmain5%7Cdl17%7Csec1_lnk3%7C101655

This is sad. I grew up with Friendly's. It feels like the world is falling apart.

Not familiar with this chain so I cant really say how they were doing.

However lately there have been several eating places that have filed bankruptcy, yet drive by one of their places and the parking lot was full.


I know some places have been hit hard by the economy, and I suspect corporate greed in the others. A busy chain goes up and bankrupt hmmm more likely the owners want to get more money, so lets pay less people and close a few shops. The result more people out of work and these crooks laughing all the way to the bank. Makes me :mad:

I ate at Friendly's once and it was probably my last.

Their ice cream was wonderful, but everything else--especially customer service, was sub par. I'm surprised that they are still in business at all.

There is a Friendly's in our area. It has been here maybe for the last 40 years, maybe longer. I would go into them occasionally. The early years was a long counter with stools. Then about 25 years ago they made it booths with a few tables. I somewhat felt they were a little high priced. It's sad the restaurant is suffering tough times but to be honest it won't effect me for in the last 40 years I have probably eaten in the them 20 times. I read in our local paper ours is staying for a while. If it does close, it will leave a void.

This sucks! I love my Friendly's!

Hey "sunshinefizzy" is your town that bad? Craptown? My area is a bedroom community.

Hey "sunshinefizzy" is your town that bad? Craptown? My area is a bedroom community.

:lol: ! Let's just say it has it's moments!

We don't have that restaurant here. Sorry to hear it's closing.