Friendly’s files for bankruptcy, enters sales agreement

130 locations expected to remain open

National /
Nov.November 02, 2020 11:33 AM
Friendly’s announced Sunday that it has filed for Chapter 11 bankruptcy (Getty)

Friendly’s announced Sunday that it has filed for Chapter 11 bankruptcy (Getty)

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.

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.





    Related Articles

    arrow_forward_ios
    Burberry's Jonathan Akeroyd with 11 West 42nd Street (Getty, Google Maps, iStock)
    Burberry sews up deal at Tishman Speyer building
    Burberry sews up deal at Tishman Speyer building
    Adam Leitman Bailey, Y. David Scharf, and Miki Naftali with 215 West 84th Street (Adam Leitman Bailey, Morrison Cohen, Getty)
    Naftali lays out project as holdout tenant plays new card
    Naftali lays out project as holdout tenant plays new card
    Taconic Partners' Matthew Weir and Hudson Research Center 61 at 9 West 54th Street (iStock, Taconic Partners, Hudson Research Center)
    RPI signs at Taconic and Silverstein’s life sciences hub
    RPI signs at Taconic and Silverstein’s life sciences hub
    Harry and Linda Macklowe (Getty Images, Andy Warhol Foundation for the Visual Arts, Inc./Artists Rights Society (ARS), NY, Sotheby's, iStock)
    Macklowe art collection fetches nearly $1B at auction
    Macklowe art collection fetches nearly $1B at auction
    Buildots' Aviv Leibovici, Roy Danon and Yakir Sudry (Buildots)
    Construction-tech firm Buildots raises $60M in Series C round
    Construction-tech firm Buildots raises $60M in Series C round
    660 Fifth Avenue in Manhattan and Macquarie Group's Shemara Wikramanayake (Brookfield Properties, iStock, Macquarie Group, Illustration by Kevin Cifuentes for The Real Deal)
    Brookfield signs first tenant at 660 Fifth Avenue
    Brookfield signs first tenant at 660 Fifth Avenue
    Major Food Group managing partner Jeff Zalaznick in front of 37 Hudson Yards (Major Food Group, Google Maps)
    Major Food Group bringing members club to Hudson Yards
    Major Food Group bringing members club to Hudson Yards
    A photo illustration of self-storage units (iStock)
    Self storage still rising after pandemic surge
    Self storage still rising after pandemic surge
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...