As we reported last week, the financial outlook at ice cream and burger chain Friendly’s is bleak. Earlier today, the company confirmed rumors it would be filing for Chapter 11 bankruptcy protection and announced it has closed 63 shops around the country.
But all is not lost for those of us who still enjoy the occasional monster-sized, chocolate syrup-drenched, candy-coated sundae. 424 Friendly’s will remain open while the company puts itself into the sale process with an affiliate of its current owners, Sun Capital Partners, as the lead or “Stalking Horse” bidder. The company hopes that it can quickly restructure and remain viable.
From the Friendly folks:
The decision to financially restructure through a Chapter 11 filing was driven largely by the challenges of the current economic downturn, significantly increased costs, particularly in commodities such as cream, rents that exceed current market rates and certain of the Company’s current unrelated liabilities. The filing will provide Friendly’s with the tools and time to strengthen its balance sheet, close underperforming restaurants, revisit certain agreements and reposition the Company for long-term success.
Here is the list of Friendly’s that have been closed: