Friendly's Files Bankruptcy & Closes 63 Stores

Friendly's Restaurant, a 400+ restaurant chain filed for Chapter 11 bankruptcy protection on Wednesday at The United States Bankruptcy Court for the District of Delaware.

As a result of the restaurant bankruptcy filing - Friendly's closed 63 stores, each of which 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 forbankruptcy, as consumers continue to eat out less, a habit they picked up during the recession, and food costs remain high.

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

Posted in Chapter 11 Bankruptcy , Friendly's Bankruptcy , Restaurant Bankruptcy , United States Bankruptcy Courts