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
    Before the pandemic, national tenants paid 94 percent of rent. (Getty)

    Retail rent collections rebound to 90%

    Retail rent collections rebound to 90%
    Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

    7 Manhattan hotels head to auction block

    7 Manhattan hotels head to auction block
    As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

    Silicon Valley exodus: Where’d everyone go?

    Silicon Valley exodus: Where’d everyone go?
    TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

    The 10 biggest new project filings in NYC

    The 10 biggest new project filings in NYC
    Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

    Cuomo adds housing to $51B Midtown West project

    Cuomo adds housing to $51B Midtown West project
    Alex Sapir (Getty)

    Former Sapir employee accuses company of retaliation

    Former Sapir employee accuses company of retaliation
    229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)

    What appraisal reductions mean for future losses on CMBS loans

    What appraisal reductions mean for future losses on CMBS loans
    Cushman & Wakefield CEO Brett White, Mayor Bill de Blasio, and Donald Trump, Eric Trump and Donald Trump Jr. (Getty)

    Cushman & Wakefield, NYC cut ties to Trump Organization

    Cushman & Wakefield, NYC cut ties to Trump Organization
    arrow_forward_ios

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

    Loading...